The double entry for July 31 would be?

July 1 – Started business with #10,500
July 31- Paid Agro machine x #6,000 owing them

A. debit Agromachinex and credit cash
B. debit equipment and credit Agromachinex
C. credit capital and debit cash
D. credit cash and debit purchases

Correct Answer:

Option A – debit Agromachinex and credit cash

Explanation

Debit the creditors account ( agro-machine) and credit cash