Question

Journalise the following:

Purchased a typewriter from Enamjee on credit rupees 3,400​

Answer 1

Typewriter A/c ...Dr 3,400

‎ ‎ ‎To Enamjee's A/c 3,400

Explanation:

The two accounts involved in the given transaction are Typewriter A/c and Enamjee's A/c

• Typewriter A/c is an asset A/c
• Enamjee's A/c is a liability A/c

According to the rules of debit and credit:

• All the assets should be debited on increase and credited on decrease.
• All the liabilities should be credited on increase and debited on decrease.

Since our liability towards Enamjee is increasing and our asset (Typewriter) is increasing on this transaction, the correct journal entry is:

Typewriter A/c ...Dr 3,400

‎ ‎ ‎To Enamjee's A/c 3,400

(Being typewriter purchased on credit)