Chapter 6/7 - Double entry
bookkeeping Exam with complete
solution 2026
How are transactions initially recorded on financial documents? - ANSWERS-1. Input
into books of prime entry
2. Process transactions through ledgers
3. Generate output (e.g. summarise info into reports, trial balances and financial
statements)
Accounting equation - ANSWERS-ASSETS - LIABILITIES = CAPITAL
Double entry bookkeeping system works on a duel effect - ANSWERS-Every
transaction has two effects on a business
Debit entries (left side) - ANSWERS-INCREAE
- Assets
- Expenses
- Drawings
DECREASE
- Liabilities
- Income
- Capital
Credit entries (right side) - ANSWERS-INCREASE
- Liabilities
- Income
- Capital
DECREASE
- Assets
- Expenses
- Drawings
