To solve this problem we would set up accounts (in the general ledger) for cash, sales, loans, vehicles (fixed asset) & electricity.
When recording a transaction to an account we include the date of the transaction, a brief description (like where the opposite entry is posted) and amount.
The cash account is Debited with the 2 receipts and Credited with the 3 payments:
The next slide shows the accounts for the income, expense, fixed assets and loan and the entries corresponding to the cash entries entries stated above.
How to solve the example