H M D G 1 2.6 Identity debits, credits and normal balances. Selected transactions for Bookit Pty Ltd, a bookkeeping service in its first month of business, 3 are as follows: 4 5 1) Issued shares to investors for $10 000 in cash 6.2 Purchased used photocopier for $3000 on account, for use in business. 73) Purchased supplies on account for $400. 8 4) invoiced customers $1800 for services performed. 5) Paid $300 cash for advertising start of business 10 6) Received $1500 cash from customers invoiced in transaction (4) 11 7) Paid creditor $3000 cash on account 8) Paid rent for month. $600 cash 12 13 14 For Transaction: 15 (a) the basic type of account debited and credited (asset, ftability, equity) (b) the specific account debited and credited (cash, rent expense, service revenue etc.) (c) whether the specific account is increased or decreased. 16 39 20 Account debit Account credited 21 Transaction bosklype specific amount effect normal balance basic type specific amount afect normal balance 13 1 Asset (cash increase debit equity share capital Increase Credit 2 Asset increase debit 16 57