what is double entry,giving example questions with solutions on performing double entry?

Double entry is a fundamental accounting concept that states every financial transaction has equal and opposite effects in at least two different accounts. It follows the principle that for every debit entry, there must be a corresponding credit entry of equal value.

Here are some example questions with solutions on performing double entry:

Question 1:
A company purchases office supplies for $500 in cash.

Solution:
Accounts affected:
- Office Supplies (Asset account)
- Cash (Asset account)

Double entry:
Debit Office Supplies $500
Credit Cash $500

Question 2:
A company receives $1,000 from a customer as payment for services rendered.

Solution:
Accounts affected:
- Accounts Receivable (Asset account)
- Cash (Asset account)

Double entry:
Debit Cash $1,000
Credit Accounts Receivable $1,000

Question 3:
A company pays $2,000 to a supplier for inventory purchased on credit.

Solution:
Accounts affected:
- Accounts Payable (Liability account)
- Cash (Asset account)

Double entry:
Debit Accounts Payable $2,000
Credit Cash $2,000

Question 4:
A company earns $5,000 in revenue from providing services to a client.

Solution:
Accounts affected:
- Revenue (Income account)
- Accounts Receivable (Asset account)

Double entry:
Debit Accounts Receivable $5,000
Credit Revenue $5,000

Question 5:
A company settles a $1,500 loan by making a payment in cash.

Solution:
Accounts affected:
- Loan Payable (Liability account)
- Cash (Asset account)

Double entry:
Debit Loan Payable $1,500
Credit Cash $1,500

These examples demonstrate how each transaction affects at least two accounts, with one account being debited and the other being credited. The total debits must always equal the total credits to maintain the balance in the accounting equation.