Show the debit and credit accounts of the following transactions in the ledger and what effect (i.e., increase/decrease) they have on assets, liabilities, equity, income and expenses.

The first one is done as an illustration.

(a) Pay wages of £7,000

(b) Introduces £10,000 equity by way of a cheque.

(c) Buys a car for £9,000 by cheque.

(d) Pays electricity bill of £300.

(e) Sales for £9,000 cash.

(f) Purchases £3,000 on credit from A. Taylor.

Transcribed Image Text:

Debit effect Wages: increases an expense Credit effect Bank: decreases an asset