Example of Double Entry Let us work through a Practical Example of Double Trial system in Bookkeeping. Task Complete the ledger accounts for the above transactions and balance – accounts and complete a Trial Balance. The following are the transactions of Mrs Martin in January 2012 Jan 1 Introduced Capital into the bank account for the business €40,000 Debit Bank Account €40,000 Credit Capital Account €40,000 Jan 4 Purchased Equipment, paid by cheque €23,000 Debit Equipment Account – €23,000 Credit Bank Account – €23,000 Jan 8 Purchased goods on credit for Hennessy Ltd €8,000 Debit Purchases Account – €8,000 Credit Hennessy Ltd – €8,000 Jan 10 Sold goods on credit to R. Murphy €550 Debit R. Murphy Account – €550 Credit Sales Account – €550 Jan 12 Paid Advertising by cheque €330 Debit Advertising Account – €330 Credit Bank Account – €330 Jan 13 Cash Sales €580 Debit Cash Account – €580 Credit Account – €580 Jan 14 R. Murphy paid the business owed €550 Debit Bank Account – €550 Credit R. Murphy – €550 Jan 16 Purchased goods on credit Hennessy Ltd €4,000 Debit Purchases Account – €4,000 Credit Hennessy Ltd Account – €4,000 Jan 20 Paid Hennessy Ltd €10,000 Debit Hennessy Ltd – €10,000 Credit Bank Account – €10,000
Example of Double Entry Let us work through a Practical Example of Double system in Bookkeeping. Task – Complete the ledger accounts for the above transactions and balance accounts and complete a Trial Balance. The following are the transactions of Mrs Martin in January 2012 Jan 1 Introduced Capital into the bank account for the business €40,000 Debit Bank Account €40,000 Credit Capital Account €40,000 Jan 4 Purchased Equipment, paid by cheque €23,000 Debit – Equipment Account €23,000 Credit – Bank Account €23,000 Jan 8 Purchased goods on credit for Hennessy Ltd €8,000 Debit – Purchases Account €8,000 Credit – Hennessy Ltd €8,000 Jan 10 Sold goods on credit to R. Murphy €550 Debit – R. Murphy Account €550 Credit – Sales Account €550 Jan 12 Paid Advertising by cheque €330 Debit – Advertising Account €330 Credit – Bank Account €330 Jan 13 Cash Sales €580 Debit – Cash Account €580 Credit – Account €580 Jan 14 R. Murphy paid the business €550 owed Debit – Bank Account €550 Credit – R. Murphy €550 Jan 16 Purchased goods on credit Hennessy Ltd €4,000 Debit – Purchases Account €4,000 Credit – Hennessy Ltd Account €4,000 Jan 20 Paid Hennessy Ltd €10,000 Debit – Hennessy Ltd €10,000 Credit – Bank Account €10,000 Trial