Assets ?liabilities = Capital Debit: meaning to receive , or value received, Credit: meaning to give , or value given Example of account entries 1. The proprietor contributes some cash to business. Dr : Cash account Cr : Capital account 2. Some cash in the till is paid into the business bank account. Dr : Bank account Cr : Cash account 3. A van is purchased for use in the business and paid by cheque Dr : Van account Cr : Bank account 4. Some goods are purchased for cash Dr : purchase Cr : Cash account 5. Some goods are purchase on credit from Fred . Dr : Purchases Cr : Fred account 6. Some goods are sold for cash Dr : cash Cr: sales account 7. Some goods are sold on credit to Sarah Dr : Sarah Cr : sales account |