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
-
debit Agromachinex and credit cash
- debit equipment and credit Agromachinex
- credit capital and debit cash
- credit cash and debit purchases
The correct answer is: A
Explanation
Debit the creditors account ( agr0-machine) and credit cash