Complete the following table assuming the business uses perpetual inventory system. indicate the account to debit...
Complete the following table assuming the business uses perpetual inventory system. indicate the account to debit and the account to credit and show the effect on the accounting equation. The first is done for you as an example.
| Transaction | Account debit | Account credit | Asset | Owners equity | Liability |
| Credit purchase of goods | Trading inventory | Creditors control | + | 0 | + |
| Cash purchase of goods. | |||||
| Cash sale of goods | |||||
| Credit sale of goods | |||||
| Goods returned to creditors | |||||
| Goods returned to debtors | |||||
| Goods donated by the business |
Homework Answers
| Transaction | Account debit | Account credit | Asset | Owners equity | Liability |
| Credit purchase of goods | Trading inventory | Creditors control | + | 0 | + |
| Cash purchase of goods. | Trading inventory | Cash Account | 0 | 0 | 0 |
| Cash sale of goods | Cash Account | Sales Account | + | + | 0 |
| Credit sale of goods | Debtor Control | Sales Account | + | + | 0 |
| Goods returned to creditors | Creditors control | Trading inventory | - | 0 | - |
| Goods returned to debtors | Trading inventory | Debtor Control | 0 | 0 | 0 |
| Goods donated by the business | Expenses | Trading inventory | - | - | 0 |
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