Question

Plant and machinery costing 230000 purchase by paying 30000 cash immediately. Journal entry

Answer 1

plant and machinery a/c Dr. 230000
to cash a/c. 30000
to creditors a/c. 200000
(being the plant and machinery purchased for 230000 and paid cash 30000 immediately )
hope its clear and helps you
if yes then mark it as brainlist answer.

Answer 2

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Plant & machinery A/c - real A/c , where asset comes into the business , therefore its debited

Supplier  A/c - Personal A/c , where creditor  is giver of Plant & machinery , therefore its credited

Cash A/c - Real A/c , where money comes into the business therefore its credited

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Journal entry

Plant & machinery A/c    Dr    230000    

          To Supplier  A/c                                  200000

           To CAsh A/c                                           30000      

(being plant & machinery purchased for cash and on credit )