Question

Laptop of Rs. 25000 purchased for office use from Computer World on credit journal

Answer 1

Answer:

Laptop A/c ... Dr - Rs. 25,000

‎ ‎ ‎To Computer World's A/c - Rs. 25,000

(Being laptop purchased on credit)

Explanation:

Here in this transaction, two accounts involved are laptop account and Computer World account.

• Laptop is an asset
• Computer world is liability

According to the rules of debit and credit, all the assets are debited on increase and liability is credited on increase.

Therefore the correct journal entry is Laptop A/c debited to Computer World's A/c.