Question

Mr. M.S Dhoni ordered for Cricket Bat worth ₹ 13,440. The journal entry will be -

(a)
Equipment a/c........Dr.....13440
..........To Cash a/c.......................13440

(b)
Cricket Bat a/c .........Dr......13440
.............To Cash a/c...................13440

(c)
Sports Equipment a/c..Dr..13440
..........To Creditors a/c ..............13440

(d) None of these *​

Answer 1

Answer:

C) Sports Equipment A/C Dr

To Creditors A/C

note :

Generally there will no entry for ordering goods. Entry is made when we purchase. once the ownership/possession is transferred journal entry is required to made