Test VI Effects of Debits and Credits in Transactions

On the lines provided, indicate with a " + " (for Increase) or a " - "  (for Decrease), the effect the debit or credit has on each account.

Example: The business received cash from a customer paying on their account.
Answer:     Account                                                          Debit             Credit
           Cash............................................................  +      
               Account Receivable....................................................     -   

1). The owner paid cash for some supplies.
          Supplies ......................................................_____
             Cash ........................................................................._____

2). The owner returned some equipment for credit.
          Accounts Payable ....................................._____
              Equipment ............................................................  _____

3). The owner invested some personal cash in the business.
          Cash ..................................................... _____
              Capital ................................................................._____

4). The owner withdrew cash from the business for personal use.
          Drawing ..............................................   _____
              Cash .................................................................    _____

5). The owner performed services for a customer, payment to be received next month.
          Accounts Receivable ............................   _____
              Fees Earned ....................................................    _____

6). The owner pays salary for the staff.
          Salaries Expense  ...................................  _____
              Cash .............................................................       _____

7). The owner makes cash withdrawal.
          Withdrawal .........................................   _____
              Cash  ..............................................................     _____

8). The owner paid the telephone bill.
          Telephone or utilities Expense................. _____
              Cash ...............................................................      _____

9). The owner paid to a creditor.
          Accounts Payable  .................................  _____
              Cash  ...........................................................        _____

10. The owner pays rent for office space.
          Rent Expense .........................................  _____
              Cash  ...........................................................         _____