July 1 – Started business with #10,500 July 31- Paid Agro machine x #6,000 owing…

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

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