Increase to be Decrease to be

recorded in: recorded in:

Assets Debit Credit
Liabilitie Credit Debit
s
Capital Credit Debit
Revenu Credit Debit
e
Expens Debit Credit
e

E3.7 Examine each of the following transactions and prepare general journal entries to record only the revenue transactions.
Explain why the remaining transactions are not revenue transactions.
a Received Rs. 1,500 cash for plumbing services provided to customer.
Date Description Debit Credit
Bank 1500
Plumbing Services 1500
Revenue transaction

b Received Rs. 20,000 cash from Ghulam Rasul, the owner of the business.
Date Description Debit Credit
Bank 20,000
Ghulam Rasul Capital 20,000
Asset Increase (Not revenue transaction)

c Received Rs. 300 from a customer in partial payment for services provided last week.
Date Description Debit Credit
Bank 300
Debtors 300
Revenue increase

d Rendered services to a customer on credit, Rs. 600.

Date Description Debit Credit
Creditors 600
Services Revenue 600
Revenue increase

e Borrowed Rs. 10,000 from a bank.

Date Description Debit Credit
Drawings 10,000
Bank 10,000
Not Revenue transaction

f Received Rs. 1,600 from a customer in payment for services to be rendered next year.
Date Description Debit Credit
Debtors 1,600
Bank 1,600
Revenue Increased
E3.8 Examine each of the following transactions and prepare general journal entries to record only the expense transactions.
Explain why the remaining transactions are not expense transactions.
a Paid Rs. 21,000 cash for shop equipment.
Date Description Debit Credit
Equipment 21,000
Bank 21,000
Asset Increase

b Paid Rs. 2,400 in partial payment for supplies purchased 30 days before.
Date Description Debit Credit
Creditors 2400
Bank 2400

c Paid utility bill of Rs. 1310.

Date Description Debit Credit
Utility Bill 1300
Bank 1300

d Paid Rs. 900 to owner of the business for his personal use.
Date Description Debit Credit
Drawings 900
Bank 900

e Paid Rs. 4,750 wages of shop employee.

Date Description Debit Credit
Wages 4750
Bank 4750
Wages are expense transactions