Question

1. Purchased Machinery for cash should be debited to: (a) Machinery A/C (b) Cash Alc (c) Purchase A/C (d) None of these

Answer 1

Answer:

(c)Purchases A/c (account)

Explanation:

Purchases account is debited when machinery is purchased.

Answer 2

MACHINERY ACCOUNT

Purchased machinery for cash should be debited to machinery account.

KEY TAKE AWAYS TO MACHINERY ACCOUNT:

* It's a genuine account since it includes all of the company's assets whose value can be calculated in terms of money.

* As a result, all of the company's assets are documented using the real-accounting rule of "debit what comes in" and "credit what goes out."

* This category of accounts includes both tangible and intangible assets, such as machinery, buildings, goodwill, patent rights, and so on.