Question

Journal entry of transaction purchased a motor car for rs 300000 and paid rupees 25000 for its repair and renewable renewal entire payment is made by cheque

Answer 1

Asset A/c dr 300000
To Bank A/c 300000
( Being motor car asset bought)

Repair & expenses A/c dr. 25000
To Bank A/c 25000
( Being motor car repaired n renwed)

Answer 2

Motor car a/c Dr 3,25,000
To bank a/c 3,25,000
(Being motor car purchased)

Motor car A/c Dr. 25,000
To Repairs and renewal 25,000
(Since repairs made during purchase of motor car)
Note: 25,000 spent for repairs should be capitalised along with motor car since it is assumed that repairs are made at the time of purchase.