On 1st April, 2015, Star Ltd. purchased 5 machines for 60,000 each. On 1st April, 2017. one of the machine was sold at a loss of 8,000.
Answers
Answer:
1st April 2015
machinary alc .. Dr 300000
to cash alc 300000
1st April 2017
cash alc .. Dr 8000
loss alc .. dr 52000
to sales alc 60000
Journal
Explanation:
we pass journal in this question
We know rules for journal
Increase in Asset Debit
Decrease in asset Credit
Loss is debit
- Star Ltd. purchased 5 machines for 60,000 each.
Aspect 1. Machine is Increased and machine is asset and increase in asset means debit
Aspect 2. Cash is paid for machine purchased so cash is decreased and cash is asset and Decrease in asset is Credit
- one of the machine was sold at a loss of 8,000.
Aspect 1. machine sold that means machine is decreased and machine is asset and rule for Decrease in asset is Credit
Aspect 2. sold at machine at loss and loss is accountable Debit
Aspect 3. cash is increased due to sale of machine and cash is asset and
Increase in Asset means Debit
Now we do journal
Date Particulars LF Dr.(Amount) Cr.(Amount)
01.04.2015 Machine A/C Dr. 300000
To Cash A/C 300000
(Being purchased 5 machines for 60,000 each.)
01.04.2017 Cash A/C Dr. 52000
Loss A/C Dr. 8000
To Machine A/C 60000
(Being one of the machine was sold at a loss of 8,000.)
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