Question 1 Introduction
A business using a double-entry system which buys an asset such as a computer, and pays by debit card, will make the following entries: debit bank account; credit computer account.
Double-entry book-keeping is so called because all transactions are recorded twice in the same account.
In double-entry book-keeping debit entries record expenses and credit entries record income.
In double-entry book-keeping the debit entry is recorded on the left of an account and the credit entry on the right.
In double-entry book-keeping the bank account of a business records money received on the debit side and money paid out on the credit side.
A business using a double-entry system which buys an asset such as a computer, and pays by debit card, will make the following entries: debit bank account; credit computer account.