Example 2

a. On March 5, Femi bought goods worth ₦30,000 cash. Show the double entry.

b. On March 5, Kemi bought goods worth ₦30,000 cash. Show the double entry.

Solution

a.

• Two accounts are involved, they are purchases and cash A/C.
• Purchasing is receiving and Cash is giving.

Please Note: The word bought represents purchases A/C.

b.

• Two accounts are involved, they are purchases and cash A/C.
• Purchasing is receiving and Cash is giving.

Please Note: The word bought represents purchases A/C.