3. Double entry bookkeeping further transactions

3. Double-entry
bookkeeping
further
transactions
Accounting AQA Year 12

, Purchases and sales Dr Bank account
20-1
Cr £ 20-1
+ A normal entry for purchase account is on the debit side £
as the account has gained value, the business has 2/10 Sales 3,000 1/10 Purch
brought goods for resale 5,000
3/10
+ A normal entry on the sales account is on the credit side Computer 700
Dr Purchases account
as the account has given value, the business has sold
goods. 20-1Cr £ 20-1
£
+ When a business buys an item for use in the business, it 1/10 Bank 5,000
is debited to a separate account because a non-current
asset is purchased. Dr Sales account
Cr
+ Likewise when a non-current asset is sold or disposed of, 20-1 £ 20-1
it is not entered in the sale account. £
2/10 Ba
Example transactions – cash purchases and cash sales, 3,000
immediate payment Dr Computer account
1 Oct Bought goods for £5,000, paying by bank transfer 20-1
Cr £ 20-1
£
2 Oct Sold some of the goods for £3,000, a cheque 3/10 Bank 700
received
3 Oct Bought computer for use in the business for £700,
paying by cheque