Available under Creative Commons-NonCommercial-ShareAlike 4.0 International License.
The following T–accounts show the relationship of increases (inc.) and decreases (dec.) to debits and credits:
Required: For each of the following transactions, indicate in the chart above with an ‘X’ which accounts are debited and credited (transaction 1 is done for you):
- Issued share capital for cash
- Paid cash for a truck
- Paid for prepaid insurance
- Borrowed cash from the bank to purchase machinery
- Received a bill from a local garage for truck repairs done last week
- Collected cash for services performed today
- Billed customers for services performed last week
- Repaid part of the bank loan
- Made a deposit for utility services to be used in the future
- Paid cash for truck operating expenses related to 5. above
- Received a bill for repair supplies used during the month
- Made a cash payment to a creditor
- Received a cash payment to satisfy an amount owed by a customer.
- 1964 reads
