Journal / Double entry

Double Entry is recorded in a manner that the Accounting Equation is always in balance. 

Assets - Liabilities = Capital

1. Purchase of machine by cash

Debit	Machine (Increase in Asset)  balance sheet
Credit	Cash (Decrease in Asset) balance sheet

2. Payment of utility bills

Debit	Utility Expense (Increase in Expense) balance sheet
Credit	Cash (Decrease in Asset) balance sheet

3. Interest received on bank deposit account

Debit	Cash (Increase in Asset) balance sheet
Credit	Finance Income (Increase in Income)

4. Receipt of bank loan principal

Debit	Cash (Increase in Asset)
Credit	Bank Loan (Increase in Liability)

5. Issue of ordinary shares for cash

Debit	Cash (Increase in Asset)
Credit	Share Capital (Increase in Equity)

6. Purchase of machine on credit
  
  Debit                             Machine (increase non current asset)                                      

          Credit                                      Payable (increase current liability)                         

7. Sales goods on cash to customer
    
   Debit                           Cash (increase current asset)                                                

          Credit                                    Sales (increase income)                                       

8.Goods purchase on credit from supplier

  Debit                             Purchase (increase expense)                                                

         Credit                                    Payable (increase current liability)