Unit Review Sheet Answers
Chapter 2/Unit 3
Review Sheet 3/Recording Transactions in T-Accounts
Answer or complete the following.
K, C
account
1. (a) A place to record changes caused by transactions is an ____________________
.
debit
(b) The left side of a T-account is the ______________
side.
credit
(c) The right side of a T-account is the ______________
side.
ledger
(d) A group of accounts is a _______________________
.
(e) A proof of the mathematical equality of the debits and credits in the ledger is a
trial balance
__________________________________
.
debit
credit
(f) An asset increases on the _____________
side and decreases on the ________________
side.
credit
debit
(g) Liabilities increase on the ______________
side and decrease on the ________________
side.
credit
(h) Owner’s equity increases on the __________________
side.
balance sheet
(i) Accounts increase on the side on which they appear on the ___________________________
.
K, A
2. For each of the following transactions, correctly enter the debit and credit in the
T-accounts provided.
(a) Received $100 cash
from a customer.
(b) Bought supplies
for $50 cash.
(c) Bought a fax machine
for $400, on account.
(d) Sold an old computer
and received $50 cash.
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
1
Chapter 2/Unit 3
Review Sheet 3/Recording Transactions in T-Accounts (cont.)
(e) The owner invested
an additional $4000
in the business.
(f) Paid $300 to a creditor
K, C 3. Explain and give an example of double-entry accounting.
For each transaction, a debit amount equal to a credit amount must be recorded in the
_____________________________________________________________________________
accounts. If equipment is bought for $500 cash: Equipment Debit $500
_____________________________________________________________________________
Cash
Credit $500
_____________________________________________________________________________
_____________________________________________________________________________
K, A, T 4. Enter either the word Increase or Decrease on each of the ruled lines that follow.
2
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario