Question

Journal entry for sold his personal car for 100000 against cheque and deposited it in his savings account

Answer 1

Journal entry for sold his personal car for 100000 against cheque and deposited it in his savings account.

In this case, the journal entry should be passed as machinery a/c debit as the asset is increasing to Proprietor’s Capital A/c (Increase in Liability).

This is totally relates with accounts (journal and ledger).