Chapter 3: Double Entry
Bookkeeping Exam with complete
solution 2026
Double entry bookkeeping - ANSWERS-Double entry bookkeeping refers to the
recording of monetary transactions within a financial accounting system.
Ledger accounts - ANSWERS-The double entry system relies upon the use of 'ledger
accounts', for which there are four types. A separate ledger account is created for each
type of asset, liability, income and expense.
What is the principles of ledger accounts? - ANSWERS-- Each transaction will affect at
least two ledger accounts;
- Total debits recorded must always equal total credits.
What is the rules that must be applied to each type of ledger account? - ANSWERS-D -
debit
E - expenses
A - assets
D - drawings / dividends
To increase the above accounts you DEBIT. To decrease you CREDIT.
- - - - - - - - - - - - - - -
C - credit
L - liabilities
I - income
C - capital
To increase the above accounts you CREDIT. To decrease you DEBIT.
What is the journal entry and ledger account for the following?
George commences business on 1 April 20X6. The following transactions take place in
his first two weeks of trading.
