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Double Entry Exercise and Solutions

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Double Entry Exercise and Solutions

Remember there are two sides to every transaction. Image credit teslamotors.com

Remember there are two sides to every transaction. Image credit teslamotors.com

ZIMSEC O Level Principles of Accounts: Double Entry Exercise and Solution[/title

  • You are required to open the asset and liability and capital accounts and record the following transactions for June 20X8 in the records of T. Moyo. 20X8
  1. June 1 Started business with $12,000 in cash.
  2. 2 Paid $11 700 of the opening cash into a bank account for the business.
  3. 5 Bought office furniture on credit from Musorowegomo Ltd for $1 900.
  4. 8 Bought a van paying by cheque $5 250.
  5. 12 Bought equipment from Mutape and Sons on credit $2 300.
  6. 18 Returned faulty office furniture costing $120 to Dream Ltd.
  7. 25 Sold some of the equipment for $200 cash.
  8. 26 Paid amount owing to Musorowegomo Ltd $1 780 by cheque.
  9. 28 Took $130 out of the bank and added to cash
  10. 30 E Makandiwa lent us $4 000 – giving us the money by cheque.
  • Always remember the following steps.
  • The first step is to identify the accounts involved.
  • The second step is to identify the account “Receiving” and therefore is to be debited.
  • The third step is to identify the account which is “giving” and therefore is to be credited.
  • With practice you can become more proficient and will not need this checklist.

Solution

DATEACCOUNT DEBITEDACCOUNT CREDITEDAMOUNT
1 JuneCashCapital$12 000
2 JuneBankCash$11 700
5 JuneOffice FurnitureMusorowegomo$1 800
8 JuneVanBank$5 250
12 JuneEquipmentMutape and Sons$2 300
18 JuneMusorowegomoOffice Furniture$120
25 JuneCashEquipment$200
26 JuneMusorowegomoBank$1780
28 JuneCashBank$180
30 JuneBankE Makandiwa$4 000

To revise go back to the notes on Double Entry accounting.

To access more topics to the Principles of Accounts Notes page.

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By | 2017-01-17T11:21:46+00:00 June 18th, 2015|Notes, Ordinary Level Notes, Principles of Accounts Notes|1 Comment

About the Author:

He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.

One Comment

  1. Gerald Hlasi April 26, 2016 at 7:27 am - Reply

    thanks for the good work ,this stuff is very helpful

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