PRIME DOUBLE ENTRIES

CHAPTER 4,5,6
• CASH SALE
DR CASH -> (SOFP/CURRENT ASSETS/CASH ACCOUNT/INCREASES)
CR SALE -> (SPL/SALES OR REVENUE ACCOUNT/ INCREASES)

• CREDIT SALE
DR RECEIVABLE -> ( SOFP/CURRENT ASSETS/RECEIVABLE ACCOUNT/INCREASES)
CR SALE -> (SPL/SALES OR REVENUE ACCOUNT/ INCREASES/SALES DAY BOOK)

• CASH PUCHASE
DR PURCHASE -> (SPL/PURCHASE ACCOUNT/ INCREASES)
CR CASH -> ( SOFP/CURRENT ASSETS/CASH ACCOUNT/DECREASES)

• CREDIT PUCHASE
DR PURCHASE -> (SPL/PURCHASE ACCOUNT/ INCREASES)
CR PAYABLE -> (SOFP/CURRENT LIABILITIES/PAYABLE ACCOUNT/INCREASES/PURCH. DAY
BOOK)
 CHAPTER 4,5,6
• CASH SALE RETURNS
DR SALES RETURNS -> (SPL/SALES OR REVENUE ACCOUNT/DECREASES AT THE END OF THE PERIOD)

CR CASH -> (SOFP/CURRENT ASSETS/CASH ACCOUNT/DECREASES/CASH BOOK)

• CREDIT SALE RETURNS

DR SALES RETURNS -> (SPL/SALES OR REVENUE ACCOUNT/DECREASES AT THE END OF THE PERIOD.
SALES RETURN

DAY BOOK)

CR RECEIVABLE -> (SOFP / CURRENT ASSETS/RECEIVABLE ACCOUNT/DECREASES)

• CASH PUCHASE RETURNS

DR CASH -> (SOFP/CURRENT ASSETS/CASH ACCOUNT/INCREASES/CASH BOOK)

CR PURCHASE RETURNS -> (SPL/PURCHASE ACCOUNT/DECREASES AT THE END OF THE PERIOD)

• CREDIT PUCHASE RETURNS

DR PAYABLE -> (SOFP/CURRENT LIABILITIES/PAYABLE ACCOUNT/ DECREASES)

CR PURCHASE RETURNS -> (SPL/PURCHASE ACCOUNT/DECREASES AT THE END OF THE

 CHAPTER 4,5,6
• PAYMENTS TO SUPPLIER FOR PAYABLE

DR PAYABLE -> (SOFP/CURRENT LIABILITIES/PAYABLE ACCOUNT/DECREASES)

CR CASH -> (SOFP/CURRENT ASSETS/CASH ACCOUNT/DECREASES/CASH BOOK)
• PAYMENTS FROM OUTSTANDING CUSTOMER

DR CASH -> (SOFP/CURRENT ASSETS/CASH/INCREASES/CASH BOOK )

CR RECEIVABLE -> (SOFP / CURRENT ASSETS/RECEIVABLE ACCOUNT/DECREASES)
• PAYMENTS FOR EXPENSE.

DR EXPENSE -> (SPL/OTHER EXPENSES/INCREASES)

CR CASH -> ( SOFP/CURRENT ASSETS/CASH ACCOUNT/DECREASES/CASH BOOK)
• BUSINESS DECIDES ON THE AMOUNT OF CASH TO BE HELD AS A FLOAT

DR PETTY CASH -> (SOFP/CA/CASH/INCREASES/PETTY CASH BOOK)

CR BANK ACCOUNT -> ( SOFP/CA/BANK/DECREASES/CASH BOOK)
• BUSINESS DECIDES TO TRANSFER EXCESS AMOUNT TO THE BANK ACCOUNT

DR BANK ACCOUNT -> (SOFP/CA/BANK/INCREASES/CASH BOOK)

CR PETTY CASH -> ( SOFP/CA/CASH/DECREASES/PETTY CASH BOOK)
 CHAPTER 4,5,6
• WHEN PROPRIETOR INJECTS CASH INTO THE BUSINESS.

DR CASH -> (SOFP/CURRENT ASSETS/CASH ACCOUNT/INCREASES/CASH BOOK)

CR DRAWINGS -> (EQUITY/CAPITAL/INCREASES AT THE END OF THE YEAR/JOURNAL)
• WHEN PROPRIETOR INJECTS NCA INTO THE BUSINESS.

DR NCA -> (SOFP/NON-CURRENT ASSETS/INCREASES/JOURNAL)

CR DRAWINGS -> (EQUITY/CAPITAL/INCREASES AT THE END OF THE YEAR/JOURNAL)
• WHEN PROPRIETOR TAKES CASH FROM THE BUSINESS FOR PERSONAL USE.

DR DRAWINGS -> (SOFP/CAPITAL/DECREASES AT THE END OF THE YEAR/JOURNAL)

CR CASH -> ( SOFP/CURRENT ASSETS/CASH ACCOUNT/DECREASES/CASH BOOK)
• WHEN PROPRIETOR TAKES INVENTORY FROM THE BUSINESS FOR PERSONAL USE.

DR DRAWINGS -> (SOFP/CAPITAL/DECREASES AT THE END OF THE YEAR/JOURNAL)

CR PURCHASE -> ( SPL/PURCHASE/CASH ACCOUNT/DECREASES)
• WHEN PROPRIETOR TAKES NCA FROM THE BUSINESS FOR PERSONAL USE.

DR DRAWINGS -> (SOFP/CAPITAL/DECREASES AT THE END OF THE YEAR)

CR NCA -> (SOFP/NON-CURRENT ASSETS/DECREASES)
 CHAPTER 7
• OPENING INVENTORY

DR PROFIT OR LOSS A/C -> (TO SPL/ COGS/PURCHASES/ INCREASES)

CR INVENTORY ACCOUNT -> (FROM SOFP / CURRENT ASSETS / INVENTORY ACCOUNT
DECREASES)
• CLOSING INVENTORY

DR INVENTORY ACCOUNT -> (TO SOFP/ CURRENT ASSETS / INVENTORY ACCOUNT /

INCREASES)
CR PROFIT OR LOSS ACCOUNT -> (FROM SPL/ COGS/ PURCHASES / DECREASES)
• CARRIAGE INWARDS (CREDIT TRANSACTION)

DR PURCHASE -> (SPL/ COGS/PURCHASES / INCREASES)

CR PAYABLE -> (SOFP/ CURRENT LIABILITIES/ PAYABLE/ INCREASES)
• CARRIAGE INWARDS (CASH TRANSACTION)

DR PURCHASE -> (SPL/ COGS/PURCHASES / INCREASES)

CR CASH -> (SOFP/ CURRENT ASSETS/ CASH/ DECREASES)
 CHAPTER 7
• CARRIAGE OUTWARDS (CREDIT TRANSACTION)
DR DELIVERY EXPENSE -> (SPL / EXPENSES / INCREASES)
CR PAYABLE -> (SOFP/ CURRENT LIABILITIES/ PAYABLE/ INCREASES)
• CARRIAGE OUTWARDS (CASH TRANSACTION)
DR DELIVERY EXPENSE -> (SPL / EXPENSES / INCREASES)
CR CASH -> (SOFP/ CURRENT ASSETS/ CASH/ DECREASES)
• DOUBLE ENTRY FOR GOODS STOLEN OR DESTROYED
DR EXPENSE OR INSURANCE -> (SPL OR SOFP/OTHER EXPENSES OR CA/
EXPENSE OR
INSURANCE CLAIM ACCOUNT/INCREASES)
CR COGS -> (SPL/COST OF SALE / DECREASES)
 CHAPTER 8
• DEPRECIATION CHARGE FOR THE YEAR
DR DEPRECIATION CHARGE -> (SPL/DEPRECIATION EXPENSE OR COGS/INCREASES)
CR ACCUMULATED DEPRECIATION -> (SOFP/NCA/ACCUMULATED DEPRECIATION/INCREASES)
• REVALUATION UPWARDS OF NCA WITH ACCUMULATED DEPRECIATION
DR ACCUMULATED DEPRECIATION -> (SOFP/NCA/ACCUMULATED DEPRECIATION/DECREASES)
DR COST OF NCA -> (SOFP/NCA /NCA COST/INCREASES)
CR REVALUATION SURPLUS -> (EQUITY /REVALUATION SURPLUS /INCREASES)
• REVALUATION DOWNWARDS OF NCA WITH ACCUMULATED DEPRECIATION
DR ACCUMULATED DEPRECIATION -> (SOFP/NCA/ACCUMULATED DEPRECIATION/DECREASES)
DR REVALUATION SURPLUS -> (EQUITY /REVALUATION SURPLUS /DECREASES)
CR COST OF NCA -> (SOFP/NCA /NCA COST/DECREASES)
• TRANSFER OF EXCESS DEPRECIATION
DR REVALUATION SURPLUS -> (EQUITY /REVALUATION SURPLUS /DECREASES)
CR RETAINED EARNINGS -> (EQUITY /RETAINED EARNINGS /INCREASES)
 CHAPTER 8
• DISPOSAL OF NCA FOR CASH (IF PROCEEDS EXCEED CARRYING VALUE)

DR CASH->(SOFP/CA/CASH/INCREASES)
DR ACCUMULATED DEPRECIATION -> (SOFP/NCA/ACCUMULATED DEPRECIATION/DECREASES)
CR COST OF NCA -> (SOFP/NCA/NCA COST/DECREASES)
CR PROFIT ON DISPOSAL -> (SPL/OTHER INCOME/INCREASES) WITH THE EXCEED AMOUNT
• DISPOSAL OF NCA FOR CASH (IF CARRYING VALUE EXCEED PROCEEDS)

DR LOSS ON DISPOSAL -> (SPL/OTHER EXPENSES/INCREASES) WITH THE EXCEED AMOUNT

DR ACCUMULATED DEPRECIATION -> (SOFP/NCA/ACCUMULATED DEPRECIATION/DECREASES)
CR COST OF NCA -> (SOFP/NCA/NCA COST/DECREASES)
• DISPOSAL OF NCA (IF THERE IS NO PROCEEDS, NOT FULLY DEPRECIATED)

DR LOSS ON DISPOSAL -> (SPL/OTHER EXPENSES/INCREASES) WITH THE FULL CARRYING

VALUE
DR ACCUMULATED DEPRECIATION -> (SOFP/NCA/ACCUMULATED DEPRECIATION/DECREASES)
CR COST OF NCA -> (SOFP/NCA/NCA COST/DECREASES)
 CHAPTER 10
• ACCRUAL
DR EXPENSE -> (SPL/OTHER EXPENSES/INCREASES)
CR ACCRUAL -> (SOFP/CL/ACCRUAL/INCREASES)
• ACCRUED INCOME
DR ACCRUED INCOME -> (SOFP/CA/RECEIVABLE/INCREASES)
CR INCOME -> (SPL/OTHER INCOME/INCREASES)
• PREPAYMENT
DR PREPAYMENT -> (SOFP/CA/PREPAYMENT/INCREASES)
CR EXPENSE -> (SPL/OTHER EXPENSES/DECREASES)
• ADVANCE
DR CASH -> (SOFP/CA/CASH/INCREASES)
CR ADVANCE -> (SOFP/CL/ADVANCE/INCREASES)
 CHAPTER 11
• SETTING UP OR INCREASE IN PROVISION

DR EXPENSE -> (SPL/OTHER EXPENSES/INCREASES)

CR PROVISION -> (SOFP/CL/PROVISION/INCREASES)

• DECREASE IN PROVISION

DR PROVISION-> (SOFP/CL/PROVISION/DECREASES)
CR EXPENSE -> (SPL/OTHER EXPENSES/DECREASES)
 CHAPTER 12
• DIRECTLY WRITING OFF IRRECOVERABLE DEBTS

DR IRRECOVERABLE DEBTS -> (SPL/IRRECOVERABLE DEBTS EXPENSE/INCREASES)

CR RECEIVABLES -> (SOFP/CA/RECEIVABLES/DECREASES)
• SETTING UP ALLOWANCE FOR RECEIVABLES OR INCREASE IN ALLOWANCE FOR RECEIVABLES

DR IRRECOVERABLE DEBTS -> (SPL/IRRECOVERABLE DEBTS EXPENSE/INCREASES)

CR ALLOWANCE FOR RECEIVABLES -> (SOFP/CA/ALLOWANCE FOR RECEIVABLES/INCREASES)
• WRITING OF IRRECOVERABLE DEBTS WHICH PREVIOUSLY SET UP ALLOWANCE FOR

DR ALLOWANCE FOR RECEIVABLES -> (SOFP/CA/ALLOWANCE FOR RECEIVABLES/DECREASES)

CR RECEIVABLES -> (SOFP/CA/RECEIVABLES/DECREASES)
• DECREASE IN ALLOWANCE FOR RECEIVABLES

DR ALLOWANCE FOR RECEIVABLES -> (SOFP/CA/ALLOWANCE FOR RECEIVABLES/DECREASES)

CR IRRECOVERABLE DEBTS -> (SPL/IRRECOVERABLE DEBTS EXPENSE/DECREASES)
• PAYMENT BY OUTSTANDING CUSTOMER

DR CASH -> (SOFP/CA/CASH/INCREASES)

CR IRRECOVERABLE DEBTS -> (SPL/IRRECOVERABLE DEBTS EXPENSE/DECREASES)
 CHAPTER 13
• SALE OF GOODS $100 WITH 20% SALES TAX FOR REGISTERED TRADER

DR CASH OR RECEIVABLE $120 -> (SOFP/CA/CASH OR RECEIVABLE/INCREASES)

CR SALE $100 -> (SPL/SALE OR REVENUE /DECREASES)
CR SALES TAX PAYABLE $20 -> (SALES TAX CONTROL ACCOUNT/SOFP)
• PURCHASE OF GOODS $100 WITH 20% SALES TAX FOR REGISTERED TRADER

DR PURCHASE $100 -> (SPL/PURCHASE/INCREASES)

DR SALES TAX $20 -> (SALES TAX CONTROL ACCOUNT/SOFP)
CR CASH OR PAYABLE $120 -> (SOFP/CA OR CL/CASH OR PAYABLE/DECREASES OR
INCREASES)
• PURCHASE OF GOODS $100 WITH 20% SALES TAX FOR UNREGISTERED TRADER

DR PURCHASE $120 -> (SPL/PURCHASE/INCREASES)

CR CASH OR PAYABLE $120 -> (SOFP/CA OR CL/CASH OR PAYABLE/DECREASES OR
INCREASES)
 CHAPTER 14, 15
• DOUBLE ENTRY FOR DISCOUNT RECEIVED $20 FOR THE GOODS WITH PURCHASE PRICE $100

DR PAYABLE $100 -> (SOFP/CL/PAYABLE/DECREASES)

CR CASH $80 -> (SOFP/CA/CASH/DECREASES)
CR DISCOUNTS RECEIVED $20 -> (SPL/OTHER INCOME/DISCOUNTS RECEIVED/INCREASES)
• DOUBLE ENTRY FOR DISCOUNT ALLOWED $20 FOR THE GOODS WITH SALE PRICE $100

DR CASH $80 -> (SOFP/CA/CASH/INCREASES)

DR DISCOUNTS ALLOWED $20 (SPL/OTHER EXPENSES/DISCOUNTS ALLOWED/INCREASES)
CR RECEIVABLE $100 -> (SOFP/CA/RECEIVABLE/DECREASES)
• DOUBLE ENTRY FOR SALE/ DISCOUNT ALLOWED $20 FOR THE GOODS WITH SALE PRICE $100 (IF
CUSTOMER IS EXPECTED TO TAKE THE ADVANTAGE)
DR RECEIVABLE $80 -> (SOFP/CA/RECEIVABLE)
CR SALES $80 -> (SPL/SALE)
• IF CUSTOMER DOES NOT TAKE THE ADVANTAGE, THEN SALE SHOULD BE INCREASED BY $20

DR RECEIVABLE $20 -> (SOFP/CA/RECEIVABLE/INCREASES)

CR SALE $20 -> (SPL/SALE/INCREASES)
 CHAPTER 14, 15
• DOUBLE ENTRY FOR DISHONOURED BILLS OR CHEQUES BY CUSTOMERS

DR RECEIVABLE -> (SOFP/CA/RECEIVABLE/INCREASES)

CR CASH -> (SOFP/CA/CASH/DECREASES)

• DOUBLE ENTRY FOR CASH PAID TO CUSTOMERS TO CLEAR (IN RESPECT OF) CREDIT BALANCES IN RECEIVABLE
ACCOUNT

DR RECEIVABLE -> (SOFP/CA/RECEIVABLE/INCREASES)

CR CASH -> (SOFP/CA/CASH/DECREASES)

• DOUBLE ENTRY FOR INTEREST CHARGED ON LATE PAID ACCOUNTS

DR RECEIVABLE -> (SOFP/CA/RECEIVABLE/INCREASES)

CR INTEREST CHARGE INCOME -> (SPL/OTHER INCOME/INTEREST CHARGE INCOME/INCREASES)

• DOUBLE ENTRY FOR CASH RECEIVED FROM SUPPLIERS TO CLEAR (IN RESPECT OF) DEBIT BALANCES IN
PAYABLE ACCOUNT

DR CASH -> (SOFP/CA/CASH/INCREASES)

CR PAYABLE -> (SOFP/CL/PAYABLE/INCREASES)

• DOUBLE ENTRY FOR INTEREST PAID ON OVERDUE ACCOUNT

DR INTEREST CHARGE EXPENSE -> (SPL/OTHER EXPENSES/INTEREST CHARGE/INCREASES)

 CHAPTER 14, 15
• DOUBLE ENTRY FOR CASH REFUNDS TO CREDIT CUSTOMERS
DR RECEIVABLE -> (SOFP/CA/RECEIVABLE/INCREASES)
CR CASH -> (SOFP/CA/CASH/DECREASES)
• DOUBLE ENTRY FOR CASH REFUNDS FROM SUPPLIERS
DR CASH -> (SOFP/CA/CASH/INCREASES)
CR PAYABLE -> (SOFP/CL/PAYABLE/INCREASES)
• DOUBLE ENTRY FOR CONTRA
DR PAYABLE -> (SOFP/CL/PAYABLE/DECREASES)
CR RECEIVABLE -> (SOFP/CA/RECEIVABLE/DECREASES)
• DOUBLE ENTRY FOR DIRECT DEBIT OR BANK CHARGES
DR INTEREST CHARGE -> (SPL/OTHER EXPENSES/INTEREST EXPENSE/DECREASES)
CR CASH -> (SOFP/CA/CASH/DECREASES)
• DOUBLE ENTRY FOR DIRECT CREDIT
DR CASH -> (SOFP/CA/CASH/INCREASES)
CR INTEREST INCOME -> (SPL/OTHER INCOME/INTEREST INCOME/INCREASES)
• DOUBLE ENTRY FOR STANDING ORDER
DR EXPENSE -> (SPL/OTHER EXPENSES/INCREASES)
CR CASH -> (SOFP/CA/CASH/DECREASES)
 CHAPTER 19
• DOUBLE ENTRY FOR PROFIT AFTER TAX

DR PAT -> (SPL / PAT/DECREASES)

CR RETAINED EARNINGS -> (EQUITY/RETAINED EARNINGS/ INCREASES)
• DOUBLE ENTRY FOR INCOME TAX CHARGE

DR INCOME TAX EXPENSE -> (SPL /TAX CHARGE/INCREASES)

CR TAX PAYABLE-> (SOFP/CL/TAX PAYABLE/ INCREASES)
• DOUBLE ENTRY FOR INTEREST CHARGE

DR INTEREST EXPENSE -> (SPL / INTEREST EXPENSE /INCREASES)

CR INTEREST PAYABLE-> (SOFP/CL/INTEREST PAYABLE/ INCREASES)
• DOUBLE ENTRY FOR REVALUATION SURPLUS

DR REVALUATION SURPLUS -> (OCI / REVALUATION SURPLUS/DECREASES)

CR REVALUATION SURPLUS -> (EQUITY/REVALUATION SURPLUS
ACCOUNT/INCREASES)
 CHAPTER 19
• DOUBLE ENTRY FOR RIGHTS ISSUE

DR CASH -> (SOFP / CA/CASH/INCREASES)

CR SHARE CAPITAL -> (EQUITY/SHARE CAPITAL/ INCREASES)
CR SHARE PREMIUM -> (EQUITY/SHARE PREMIUM/ INCREASES)
• DOUBLE ENTRY FOR BONUS ISSUE

DR SHARE PREMIUM -> (EQUITY / SHARE PREMIUM/DECREASES)

DR RETAINED EARNINGS -> (EQUITY/RETAINED EARNINGS/ DECREASES) (IF SHARE PREMIUM AMOUNT IS NOT
ENOUGH)
CR SHARE CAPITAL -> (EQUITY/SHARE CAPITAL/ INCREASES)
• DOUBLE ENTRY FOR DIVIDENDS DECLARATION

DR DIVIDENDS-> (EQUITY/RETAINED EARNINGS/ DECREASES)

CR DIVIDEND PAYABLE -> (SOFP/DIVIDEND PAYABLE/ INCREASES)
• DOUBLE ENTRY FOR DIVIDENDS PAYMENT

DR DIVIDEND PAYABLE -> (SOFP/CA/DIVIDEND PAYABLE/ DECREASES)

CR CASH -> (SOFP/CA/CASH/ INCREASES)
• DOUBLE ENTRY FOR DIVIDENDS RECEIVED

DR DIVIDENDS RECEIVABLE OR CASH -> (SOFP/CA/DIVIDENDS RECEIVABLE OR CASH / INCREASES)

CR INTEREST OR DIVIDENDS RECEIVED -> (SPL/OTHER INCOME/INCREASES)