Category Archives: Chapter 3 – Double Entries

Carriage Inwards & Outwards

Carriage Inwards – Is the cost of transport of goods into the firm. Duty on Purchases – Is the taxes or tariffs paid on the imported goods. Carriage Outwards – Is the cost of transport of goods out of the … Continue reading

Posted in Chapter 3 - Double Entries | 1 Comment

Return Outwards vs Return Inwards

Return Outwards vs Return Inwards   Return Outwards: Faulty or wrong goods that the business returns back to suppliers Double Entry: Debit: Suppliers (Liabilities) Credit: Return Outwards Explanation: when you return goods back to suppliers, the amount you owe them … Continue reading

Posted in Chapter 3 - Double Entries | 14 Comments

Journals vs Ledgers

I will give you an example of what do you mean by recording in journal vs recording as ledgers E.g. Assume the following transactions took place a)      1st Jan    Your company repaid $5,000 cash to your supplier Sally b)      4th … Continue reading

Posted in Chapter 3 - Double Entries | Leave a comment

Double Entries

To recap, below are the 5 accounting elements and where to record during double entries: Accounting Elements Debit Credit Assets + – Liabilities – + Owner’s Equity – + Income / Revenue – + Expenses + –   Remember that … Continue reading

Posted in Chapter 3 - Double Entries | Leave a comment