Double Entries

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Created by
Tilly Chadwick

Cards (54)

  • Recording closing inventory:
    Dr Inventory
    Cr Closing inventory / Cost of sales
  • Drawings of inventory:
    Dr Drawings
    Cr Purchases
    (take out the cost of the good)
  • Purchase of a non-current asset:
    Dr Non-current asset
    Cr Cash / Payables
  • Depreciation:
    Dr Depreciation expense
    Cr Accumulated depreciation
  • Disposal of Non-current Asset:
    Dr Disposals
    Cr Non-current Assets
    Dr Accumulated Depreciation
    Cr Disposals
    Dr Cash
    Cr Disposals
  • Disposal through a part exchange agreement:
    Dr Disposals (original cost)
    Cr Non-current Assets (original cost)
    Dr Accumulated Depreciation (acc' dep' amount)
    Cr Disposals (acc' dep' amount)
    Dr Non-current assets (part exchange allowance)
    Cr Disposals (part exchange allowance)
    Dr Non-current assets (cash)
    Cr Cash (cash)
  • Impairment of a Non-current asset:
    Dr Impairment expense
    Cr Accumulated depreciation
  • Irrecoverable Debt:
    Dr Irrecoverable Debt Expense
    Cr Receivables
  • Irrecoverable debt that has been recovered:
    Dr Cash
    Cr Irrecoverable debt expense
  • Doubtful Receivables:
    Dr Irrecoverable debt expense
    Cr Allowance for receivables
  • Creating an Allowance for Receivables:
    Dr Irrecoverable Debt Expense
    Cr Allowance for receivables
  • Increasing Allowance for Receivables:
    Dr Irrecoverable debt expense
    Cr Allowance for Receivables
  • Decreasing Allowance for Receivables:
    Dr Allowance for receivables
    Cr Irrecoverable debt expense
  • Receive cash from a credit customer that we previously had an allowance for:
    Dr Cash
    Cr Receivables
  • Write off a debt that we previously had an allowance for:
    Dr Irrecoverable debt expense
    Cr Receivables
  • Write off a debt as irrecoverable and it is subsequently recovered:
    Dr Cash
    Cr Irrecoverable debt expense
  • Setting up an imprest system (petty cash):
    Dr Petty cash
    Cr Cash
    Dr Expense
    Cr Petty Cash
  • Vat on Sales:
    Dr Receivables (inclusive amount)
    Cr Sales (exclusive amount)
    Cr VAT account (VAT amount)
  • VAT of Purchases:
    Dr Purchases (exclusive amount)
    Dr VAT account (VAT amount)
    Cr Payables (inclusive amount)
  • Contra Entries:
    Dr Payables (difference between the two amounts)
    Cr Receivables (difference between the two amounts)
  • Dishonoured Cheques/Receipts:
    Dr Receivables
    Cr Cash
  • Prompt Payment Discount adjustment:
    didn't expect an early payment:
    Dr Receivables
    Cr Sales

    did pay early and get a discount:
    Dr Cash
    Cr Receivables
    Dr Sales
  • Redeemable preference shares:
    Dr Cash
    Cr Redeemable preference shares
    each year:
    Dr Finance costs
    Cr Cash
    once shares are fully redeemed:
    Dr Redeemable preference shares
    Cr Cash
  • Irredeemable preference shares:
    Dr Cash
    Cr Redeemable preference shares

    each year:
    Dr Retained earnings
    Cr Cash
  • Issue of ordinary shares:
    Dr Cash (issue price x no. share)
    Cr Share capital (nominal value x no. shares)
    Cr Share premium (excess over nominal x no. shares)
  • Bonus Issue:
    Dr Share premium / retained earnings if SP is nil
    Cr Share capital
  • Issue of long term liabilities:
    Dr Cash
    Cr Non-current liabilities
  • Recording interest:
    Dr Finance costs
    Cr Cash / accruals - if the interest is yet to be paid
  • Recording a provision:
    Dr Relevant expense account
    Cr Provision
    when expenditure has been incurred:
    Dr Provision
    Cr Cash
    if expenditure is different to the provision:
    Dr P+L
    Cr Provision
  • Tax in financial statements:
    accounting for tax liability:
    Dr Tax expense
    Cr Tax payable
    after year end (tax liability is paid):
    Dr Tax payable
    Cr Cash
    underprovision:
    Dr Tax expense
    Cr Tax payable
    overprovision:
    Dr Tax payable
    Cr Tax expense
  • The Accounting Equation:
    Assets = Liabilities + Capital
  • The Extended Accounting Equation:
    Assets - Liabilities = Opening capital + Profit + Capital Injections - Drawings
  • Cost of Sales calculation:
    Cost of Sales = Opening inventory + Purchases - Closing Inventory
  • Purchase of Inventory:
    Dr Purchases
    Cr Cash / Payables
  • Sale of Inventory:
    Dr Cash / Receivables
    Cr Sales
  • Sales Return:
    Dr Sales
    Cr Cash / Receivables
  • Purchase Return:
    Dr Cash / Payables
    Cr Purchases
  • Payroll:
    Dr Wages and Salaries (gross salary + employers NIC)
    Cr Cash (net salary paid to employee)
    Cr Income Tax (PAYE + employers NIC +employees NIC)
  • Accrual:
    Dr Expense
    Cr Accruals
  • Prepayment:
    Dr Prepayments
    Cr Expense