July 1 – Started business with #10,500
July 31- Paid Agro machine x #6,000 owing them
The double entry for July 31 would be
-
A.
debit Agromachinex and credit cash -
B.
debit equipment and credit Agromachinex -
C.
credit capital and debit cash -
D.
credit cash and debit purchases
Correct Answer: Option A
Explanation
Debit the creditors account ( agr0-machine) and credit cash