Double entry system：練習問題

A business paid for advertising expenses by cash. Which of the following correctly describes the double entry for this transaction?

A sole proprietor withdrew merchandise with a cost of $$HK\$1,500$$ from the business for personal use. Which of the following correctly describes the double entry for this transaction?

A business received a cheque of $$HK\$3,000$$ for commission income. The cheque was deposited into the bank account immediately. Which of the following is the correct double entry for this transaction?

Which of the following groups of accounts all normally have debit balances?

Which of the following transactions results in a decrease in both assets and liabilities?

When a business receives cash from a customer for services rendered, which two types of accounts are affected, and how are they debited or credited under the double entry system?

On 15 January, a business purchased inventory on credit for $$HK\$6,000$$. On 20 January, the business returned $$HK\$1,000$$ worth of defective inventory to the supplier. Describe the double entries required for both transactions.

Briefly explain why every financial transaction in the double-entry system requires at least one debit and one credit entry, ensuring that the total debits always equal the total credits.

State whether the following would typically result in a debit or credit entry for the specified account type:

a) An increase in an Asset account.

b) A decrease in a Liability account.

c) An increase in an Expense account.

d) A decrease in an Owner's Equity account (e.g., drawings).

Mr. Alex Wong started a new graphic design business, "Wong's Creative Studio", on 1 May 2024. The following transactions occurred during May:

(a) 1 May: Mr. Wong deposited $$250,000$$ cash into the business bank account as initial capital.

(b) 3 May: Borrowed $$100,000$$ from ABC Bank, receiving the cash directly into the business bank account.

(c) 7 May: Purchased new design software for $$30,000$$ by cheque.

(d) 12 May: Provided design services on credit to Client A for $$45,000$$.

(e) 18 May: Bought office supplies on credit from Stationery World for $$5,000$$.

(f) 22 May: Received $$25,000$$ cash from Client A for services rendered on 12 May.

(g) 26 May: Paid monthly office rent of $$12,000$$ by cheque.

(h) 30 May: Mr. Wong withdrew $$15,000$$ cash from the business for personal use.

Prepare the general journal entries for each of the above transactions. Narrations are not required.