{"id":160,"date":"2016-07-08T07:41:00","date_gmt":"2016-07-08T06:41:00","guid":{"rendered":"https:\/\/www.thetrainingplace.org\/blog\/2016\/07\/08\/a-basic-test-on-your-double-entry-part-3\/"},"modified":"2016-07-08T07:41:00","modified_gmt":"2016-07-08T06:41:00","slug":"a-basic-test-on-your-double-entry-part-3","status":"publish","type":"post","link":"https:\/\/www.thetrainingplace.org\/blog\/2016\/07\/a-basic-test-on-your-double-entry-part-3\/","title":{"rendered":"A BASIC TEST ON YOUR DOUBLE ENTRY: PART 3"},"content":{"rendered":"
\nScenario:<\/span><\/b><\/div>\n
\nSAZZ
\nLtd has just bought a vehicle for \u00a350,000 for company use and will pay for it
\nnext month. What will be the double entry posting for this?<\/o:p><\/span><\/div>\n
\n<\/div>\n
\nDouble entry posting:<\/o:p><\/span><\/b><\/div>\n
\nDR:
\nVehicle account                       \u00a350,000<\/o:p><\/span><\/div>\n
\nCR:
\nPLCA                                       \u00a350,000<\/o:p><\/span><\/div>\n
\n<\/div>\n
\nReason:<\/o:p><\/span><\/b><\/div>\n
\n<\/a>The
\nvehicle account has been debited because vehicles are increasing and if an
\nasset is increasing, we debit the relevant asset account and we have credited Purchases
\nledger control account (PLCA) because the company hasn\u2019t paid for the vehicle
\nand the full amount is currently outstanding and this is a liability. Hence the
\nliability is increasing, and if a liability is increasing, we credit the
\nrelevant liability account.<\/o:p><\/span><\/div>\n
\n<\/div>\n
\nREMEMBER:<\/o:p><\/span><\/div>\n
\nDEAD\/CLIC<\/o:p><\/span><\/b><\/div>\n
\n<\/div>\n
\nN\/B:<\/o:p><\/span><\/div>\n
\nPLCA
\nis also called Creditors Control Account\/ Trade Payables Account<\/o:p><\/span><\/div>\n

<\/p>\n

\n<\/div>\n
\nYours Sincerely,<\/span>
\nThe Friendly Team<\/span>
\n
<\/span><\/div>\n
\nThe Training Place of Excellence Limited<\/span><\/div>\n","protected":false},"excerpt":{"rendered":"

Scenario: SAZZ Ltd has just bought a vehicle for \u00a350,000 for company use and will pay for it next month. What will be the double entry posting for this? Double entry posting: DR: Vehicle account                       \u00a350,000 CR: PLCA                                   … Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-160","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"yoast_head":"\nA BASIC TEST ON YOUR DOUBLE ENTRY: PART 3 - The Training Place Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thetrainingplace.org\/blog\/2016\/07\/a-basic-test-on-your-double-entry-part-3\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A BASIC TEST ON YOUR DOUBLE ENTRY: PART 3 - The Training Place Blog\" \/>\n<meta property=\"og:description\" content=\"Scenario: SAZZ Ltd has just bought a vehicle for \u00a350,000 for company use and will pay for it next month. 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