Action Accounting
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The Pineapple Pub
Double Entry: Transaction 7 / of 16
Scene 26
/ of 100
Introduction
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Double Entry
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Balancing Accounts
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Trial Balance
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Income Statement
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Balance Sheet
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Completed Financial Statements
December 12: As Jason's plan is to improve the service experience for his clients he decides to leased a Jukebox. He paid €3,500 by cheque to cover the lease cost of a jukebox.
Leased a jukebox for €3,500 paying by cheque on 12th December.
Tick which two ledger accounts should be used.
Bank Account
Capital Account
Creditor - Flash Sales Limited Account
Creditor - Kensington Supplies Limted Account
Debtor - Hampstead Heath Party Hire Account
Discount Allowed Account
Drawings Account
Energy Expenses Account
Equipment Account
Furniture Account
Leasing Expenses Account
Purchases Account
Rent Payable Account
Rent Receivable Account
Sales Account
Wages Account
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The leasing expense account is used rather than an asset account as the jukebox is being leased, it is not owned by the business. The bank account is also involved in the transaction because payment was by cheque.
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The jukebox is being LEASED, it is not owned by the business. The cost is therefore an expense. The bank account is paying out the money.
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