The Basis of Double Entry Accounting Just some quick examples - work out the debits and credits 1. Buy a car on credit for 40,000 2. Buy a van for cash 35,000 3. Buy inventory for 10,000 on credit on 30 September 2020 4 Sell consultancy services for 50,000 payable in 2 months time 5. You pay for the inventory purchased on 30 September on 30th October and receive a 5% discount !! 6. The corporation tax for the year ended 31 Dec 2020 is 75,000 payable Sept 2021 7. You sell the inventory that you purchased for 10,000 for 17,500 on 31 January 2021 7:57 AM The Basis of Double Entry Accounting And a few more !! On 30 September 2020 the shareholders agree to invest a further 150,000 in the company by subscribing for 50,000 ordinary shares of 1 each The company proposes a dividend of 25,000 to the shareholders on 30 Sept 2020 payable 1 February 2021 The Company takes out a loan of 48,000 from National Bank on 30 November 2020. The loan is repayable over 24 instalments commencing one month from draw down. Interest of 10% p.a. is charged monthly in arrears on the outstanding balance. 8:07 AM