Transaction Effect & Double Entry

Transaction / Date Effects on Transactions Double Entry

Increase Decrease Debit Credit

Started business A (Bank)

with a cash as a OE (Capital)
capital RM 150 Bank Capital
000 into a business
bank
Bought machinery
from ABC Trading A (Machinery) Machinery ABC Trading
on credit RM3 000 L (ABC Trading)

Bought goods from

E (Purchases)
The Woods Purchases The Woods
L (Wood
Enterprise on credit Enterprise
Enterprise)
RM4 500
Withdraw money
from the bank RM
8 000 to buy a used A (Vehicle) A (Bank) Vehicle Bank
vehicle from AD
Enterprise

Paid RM 20 for
transportation A (Cash)
E
charges from The Transportation
(Transportation) Cash
Wood Enterprise
Designed a
furniture on credit A (Ms. Lily) Ms. Lily Sales - Design
for Ms. Lily R (Sales -
RM 1 800 Design)

Sold furniture on
credit to Ms. Lailah R (Sales -
RM1 100 Furniture) Ms. Lailah Sales
A (Ms. Lailah)

Sold furniture on A (Cash)

cash to Mr. Faizal R (Sales -
RM2 000 Furniture) Cash Sales - Furniture

Sold furniture on
credit to Mr. Yap
A (Mr. Yap)
RM4 500 Mr. Yap Sales
R (Sales)

Received a cheque
from Ms. Lailah
RM 800 A (Bank) A (Ms. Lailah) Bank Ms. Lailah
Bought paints from
Paint House on
E (Purchase-
cash RM 500 A (Cash) Purchase-Paint Cash
Paint)

Paid goods from

The Woods
Enterprise by E (Purchases) A (Bank) Purchases Bank
cheque RM3,300

Mr. Faizal returned A (Cash) Sales Return Cash

a set of furniture R (Sales Return)
for a damage of
RM 900
Delivered a A (Mr. Yap) Mr. Yap Transportation
furniture to Mr. R
Yap with a charge (Transportation)
RM 70
Ms. Lily paid for A (Cash) A (Ms. Lily) Cash Ms. Lily
the furniture
designed with cash
RM 1 000
Paid ABC Trading A (Machinery) A (Cash) Machinery Cash
with cash RM 1
500
Mr. Yap paid half A (Bank) A (Mr. Yap) Bank Mr. Yap
of his payment
with cheque
Designed a A (The Cherries The Cherries Cafe Sales - Design
furniture for The Cafe)
Cherries Cafe on R (Sales -
credit RM 1 600 Design)
Ms. Lailah settled A (Cash) A (Ms. Lailah) Cash Ms. Lailah
her payment RM
300 with cash
Bought an A (Electronic A (Cash) Eletronic Cash
electronic Equipment) Equipment
equipment by cash
RM 90
Received a cheque A (Bank) A (Ms. Lily) Bank Ms. Lily
from Ms. Lily RM
300
The Cherries cafe A (Cash) Cash Sales - Delivery
bought a furniture R (Sales -
costed RM 5 000 Furniture)
with cash
Bought another set E (Purchase-Paint) Cash Purchase-Paint
of paint from Paint A (Cash)
House costed RM
200 with cash
Paid the advertising E A (Cash) Advertisement Cash
company for a (Advertisement)
advertisement
purpose
RM 100
Received a A (Bank) A (Mr. Yap) Bank Mr. Yap
settlement payment E (Discount Discount Allowed
from Mr. Yap and Allowed)
give a discount
RM 50
Received a cheque A (Bank) A (The Cherries Bank The Cherries Cafe
from The Cherries Cafe)
Cafe RM 1
600 for the design
Paid employee E (Employee A (Cash) Employee Wages Cash
wages with cash of Wages)
RM 900 per person
Paid rent shop with E (Shop Rent) A (Bank) Shop Rent Bank
cheque RM 2 600
Paid electricity E (Electricity) A (Cash) Electricity Bills Cash
bills RM 300
 A E OE L R

NCA CA NCL CL

Vehicle Bank Purchases Owner’s The Woods Sales -

Equity Enterprise Furniture
Machinery Cash Advertisement ABC Trading Sales - Design

Equipment Ms. Lily Employee Sales -

Wages Delivery
Ms. Lailah Shop Rent Sales Return

Mr. Yap Electricity Purchase

Return
The Cherries Transportation
Charges
Cafe
Sales Discount
 CASH BOOK CB 1
F BAN F
CASH CASH BANK
DATE PARTICULAR O K DATE PARTICULAR O
(RM) (RM) (RM)
L (RM) L
Capital Withdrawal
18 5 Apr 18
1 Apr 150,000 from bank 8,000
Withdrawal 5 Apr Used vehicle
5 Apr 18 18
from bank 8,000 purchase 8,000
9 Apr Sales 6 Apr Transportation
18 18
2,000 charges 20
10 Apr 18 Ms. Lailah 800 11 Apr 18 Paints 500
14 Apr Ms. Lily 13 Apr The Woods
18 18
1,000 Enterprise 3,300
15 Apr 18 Mr. Yap 2,285 14 Apr 18 Mr. Faizal 900
16 Apr 18 Ms. Lailah 300 15 Apr 18 ABC Trading 1,500
17 Apr Ms. Lily 17 Apr Electronic
18 300 18
equipment 90
20 Apr Delivery 23 Apr Advertisement
18 50 18
charges 100
21 Apr The Cherries 26 Apr Employee
18 18
Cafe 4, 000 wages 4,500
23 Apr Purchase 27 Apr Shop rent
18 18
return 200 2,600
24 Apr 18 Mr. Yap 2,235 30 Apr 18 Electricity 300
25 Apr The Cherries
18 1,600
Cafe
30 Apr Balance
18
brought down 590 142,370
15,500 157,270 15,500 157,270

1 May Balance
18 brought
forward 590 142,370