DEADCLIC - Double entry dilemmas now a thing of the past!

• Capital
• Expenses
• Income
• Assets
• Drawings
• Liabilities

• Assets
• Capital
• Income
• Drawings
• Expenses
• Liabilities

Test your understanding 3 - Fill in the blanks

We apply the treatment when our entry has an impact on an account total.

Test your understanding 4 - Fill in the blanks

An invoice for stationery purchased is an example of and therefore should be  to the stationery account.

Test your understanding 5 - Fill in the blanks

An invoice for a sale is an example of and therefore should be to the sales account.

Exercise - Sale Scenario - Part 1

• CR: Sales £250, CR: VAT £50, DR: Accounts Receivable (Alfie) £300
• CR: Sales £250, CR: VAT £50, DR: Cash £90, DR: Accounts Receivable (Alfie) £210
• CR: Sales £250, DR: VAT £50, CR: Cash £90, DR: Accounts Receivable (Alfie) £210
• DR: Sales £250, CR: VAT £50, DR: Cash £90, CR: Accounts Receivable (Alfie) £210
Company ABC sold Alfie a camera for £300 (inclusive of VAT). Alfie was only able to pay 30% in cash upfront, and requested the rest on credit. How would ABC account  for this sale?

Exercise - Sale Scenario- Part 2

A month later, Alfie informs ABC that he may not be able to settle the amount he owes to them. He asks for more time to gather cash in order to settle the debt. ABC agree but decide that it would be wise to create a bad debt provision in the mean time. How would this be accounted for?

Exercise - Sale Scenario- Part 3

• CR: Bank £150, DR: Receivables £210, DR: Bad Debt Provision £60
• DR: Bank £150, CR: Receivables £210, DR: Bad Debt Provision £60
• DR: Bank £150, CR: Receivables £210, DR: Bad Debt Expense £60
• DR: Bank £150, CR: Receivables £210, CR: Bad Debt Expense £60
Alfie finally informs ABC that he will only be able to pay back £150 of the final outstanding sum. How will this be accounted for in ABC's books?

Exercise - Purchase Scenario - Part 1

• DR: Assets (Furniture) £1500, DR: Office Expenses £60, DR: VAT £312, CR: Payables £1872
• DR: Assets (Furniture) £1560, DR: VAT £312, CR: Payables £1872
• DR: Office Expenses £1500, DR: Assets (Furniture) £60, DR: VAT £312, CR: Payables £1872
• CR: Assets (Furniture) £1500, CR: Office Expenses £60, CR: VAT £312, DR: Payables £1872
Company ABC decided to purchase some new furniture for their brand spanking new office. They buy ten new desks and chairs for the total sum of £1500 ex VAT, and two lamps costing £30 each ex VAT. ABC's capitalisation threshold is £300. How would this be accounted for?