Double Entry for Assets and Liabilities

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Double entry system for assets and liabilities can be well explain with the help of following examples: Before reading “double entry for assets and liabilities” you must read, rules for debit and credit.

Examples Relating to Double Entry for Assets and Liabilities:

 Transaction 1: Owner started business with cash:

started-business-with-cash

Transaction 2: Cash deposited into bank:

cash-deposited-into-bank

Transaction 3: Bought furniture and machine by cheque:

bought-furniture-by-cheque

Transaction 4: Borrowed cash from bank:

borrowed-cash-from-bank

Transaction 5: Bought a machine on credit:

bought-machine-on-credit

Transaction 6: Cash paid by cheque:

cash-paid-by-cheque

Transaction 7: Withdraw cash for personal use:

withdraw-cash-for-personal-use

Transaction 8: Bought personal vehicle for business use:

bought-personal-vehicle-for-business-use

Transaction 9: Withdraw vehicle from business:

withdraw-vehicle-from-business

Prepare T-Accounts for Assets and Liabilities:

Following are T-accounts for cash, capital, bank, furniture:

prepare-account

Following are T-accounts for bank loan, bought machine, drawings and vehicle:

prepare-t-account1