Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

At the beginning of a financial period, before trading had started, a business owner brought her personal items into the business, made up of goods costing $5000. Which entries should have been made to record this transaction?

  • Aaccount debited: drawings; account credited: purchases
  • Baccount debited: inventory; account credited: capital
  • Caccount debited: inventory; account credited: drawings
  • Daccount debited: purchases; account credited: capital

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