Double Entry Bookkeeping

The bank account in the books will be credited. This decreases the bank balance because Peter spent $20.

The transaction is a purchase because Peter is buying stationery

Peter paid for the stationery with his bank card. He did not use the money belonging to Stationery Store or the shop assistant!

The amount has to be debited to one account and credited to another account so that the books balance

The stationery account will be debited with $20. This increases the stationery expense in the books.

The source document is the receipt; it proves the amount and the date of purchase

The two ledger accounts are the Stationery Account and the Bank Account

Peter paid $20

The other business involved in the transaction is Stationery Store.