The business entity concept states that the business is separate from the owner(s) of the business. Therefore the accounting records for even the simplest business, the sole trader, must be kept separate from the personal affairs of the owner or owners.
(i) Opening Entries: Entries passed to open a new set of books by an entity which is either starting a new business or continuing business to open a new set of books at the beginning of an accounting period.
(ii) Transfer Entries: For transfer of any amount from one account toanother. Credit purchase and sale of fixed assets.
(iii) Rectification Entries: Entries needed to rectify errors in the books of accounts.
(iv) Adjusting Entries: Entries needed before preparation of final accounts for items like accruals, prepayments, depreciation etc.
(v) Closing Entries: Entries needed to transfer the balances of nominal accounts to the Trading and Profit and Loss Account at the end of an accounting period.
(i) credit the sales account (business) and debit the cash account
(ii) credit the rent account and debit the cash
(iii) debit purchase account and credit Cash account
(iv) credit the cash account and debit the debtors
(v) debit the bank account and credit the withdrawal account.