Page 46 - Book-keeping for Secondary Schools Student’s Book Form One

Book-Keeping for Secondary Schools

Solution

Date Accounts involved Accounting Effect Debit/Credit
equation (Increase/
element Decrease)
2020 Jan. 1 Bank account Asset Increase Debit
FOR ONLINE READING ONLY
Capital account Capital/equity Increase Credit
4 Machinery account Asset Increase Debit

Alpha account Liability Increase Credit
8 Purchases account Expense Increase Debit
Julius account Liability Increase Credit
12 Cash account Asset Increase Debit

Sales account Revenue Increase Credit
16 Cash account Asset Increase Debit
Bank account Asset Decrease Credit
20 Tandahimba Ltd. account Asset Increase Debit

Sales account Revenue Increase Credit
22 Julius account Liability Decrease Debit
Purchases returns account Expense Decrease Credit
24 Wages account Expense Increase Debit

Cash account Asset Decrease Credit
26 Drawings account Capital Decrease Debit

Bank account Asset Decrease Credit
27 Purchases account Expense Increase Debit

Frida account Liability Increase Credit
28 Sales returns account Revenue Decrease Debit
Tandahimba Ltd. account Asset Decrease Credit

29 Cash account Asset Increase Debit
Rent received account Revenue Increase Credit

Example 3.3
Using tabular form, indicate the account to be debited or credited and show the effect
on assets, liabilities and capital from the following transactions:
(i) Amount received from debtor by cheque
(ii) Purchases of a motor van on credit

38
Student’s Book Form One

Book Keeping Form 1 New 2024 FINAL.indd 38 18/10/2024 10:14