Question

effects of Purchase of machinery by cheque.​

Answer 1

This transaction uses cash which is an asset and purchases a piece of Machinery, which is also an asset. Assets are increased by debiting the account, and decreased by crediting the account. So in this situation you would credit the checking account for the purchase price of the machine and debit an asset account set up for the machine (printing press, band saw, or whatever appropriate name).

Hope it's help you!!

Answer 2

Answer:

While some small businesses might take cards, paying by cheque may save you some money if they reduce prices a little since they're not paying card processing fees. If you deal with enough businesses offering reductions for non-card payments, these savings can add up over time.