Assets or Liabilities?
Bank
Asset
Received cash from sales
Dr Cash, Cr Revenue
Bought equipment for cash
Asset ↑, Asset ↓
Book where transactions are first recorded
Journal
Equipment
Asset
Paid rent in cash
Dr Rent, Cr Cash
Paid wages in cash
Asset ↓, Capital ↓
Claim owed by the business
Liability
Accounts Payable
Liability
Bought goods on credit
Dr Inventory, Cr Accounts Payable
Took loan from bank
Asset ↑, Liability ↑
Items owned by the business
Assets
Inventory
Liability
Owner withdrew cash
Dr Drawings, Cr Cash
Owner invested cash
Asset ↑, Capital ↑
Owner’s claim on the business
Owner's Equity
Loan
Liability
Owner purchased equipment for the company
Dr Equipment, Cr Capital
Customers paid back amount due
Asset ↑ Asset ↓
Decreases Owner's Equity
Drawings or Expenses