July 1 - Started business with #10,500

July 31- Paid Agro machine x #6,000 owing them

The double entry for July 31 would be

  • A debit Agromachinex and credit cash
  • B debit equipment and credit Agromachinex
  • C credit capital and debit cash
  • D credit cash and debit purchases
jamb 2013accounting

The correct answer is A. debit Agromachinex and credit cash

Debit the creditors account ( agr0-machine) and credit cash

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