Question

Bought goods from Mohan Bros. on credit of ₹ 7,000.

Paid cartage on the above goods purchased ₹ 100.what will be the journal entry. ​

Answer 1

Answer:

Purchases A/c Dr. 7000

Cartage A/c Dr. 100

To Mohan Bros.A/c 7000

To Cash A/c 100

Explanation:

Debit the expenses. Purchase and cartage

Credit the Decrease in asset. Cash

Credit the increase in liability. Mohan Bros.(Creditor).