Question

5 Purchased a second-hand machinery
6 Paid repairing charges on above machinery.....
journal
Entries ??​

Answer 1

Answer:

in case, machinery is purchased at cash or by cheqe

machinery a/c dr xxx

to bank/cash a/c dr xxx

since machinery is an asset, it is debited

machinery a/c dr xxx

to repairs a/c dr xxx

since repairs increases the actual cost of the machiery so machiery is debited and repairs is credited

Explanation:

in case, machinery is purchased on credit

machinery a/c dr xxx

to creditors a/c xxx

machinery a/c dr xxx

to repairs a/c xxx

hope your doubts are cleared

have a nice day