Question

bought stock for 3000 from ACltd journal entry​

Answer 1

Answer:

Investment A/c_Dr (3,020)

To Cash A/c (3,020)

(Being shares purchased by X Ltd. and paid brokerage)

Reason : Investment Account is debited because it increases the balance of Investment(Assets) Account and Cash Account is credited because it decreases the balance of Cash(Assets) Account.

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