Plant and machinery costing 230000 purchase by paying 30000 cash immediately journal entries
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Answered by
9
The Current transaction affects two accounts .. plant and machinery account, cash account.. because plant and machinery is bought for cash ...(they ar Real accounts; all assets and Liabilities come under Real account; plant&machinery and cash are assets) ..
The Three golden rules of accounting are....
Personal Account: Debit the receiver, credit the giver
Nominal account: Debit All expenses and losses, credit All incomes and gains
Real Account: Debit what comes in ,credit what goes out
In contention with the above rules...
plant and machinery account should be debited (it is a Real ccount/furniture is coming ine)
cash account should be credited (it is a Real account/cash is Going out)
The Journal Entry will be....
plant and machinery a/c Dr 300000
To cash a/c. 300000
(Being plant and machinery purchased)
The Three golden rules of accounting are....
Personal Account: Debit the receiver, credit the giver
Nominal account: Debit All expenses and losses, credit All incomes and gains
Real Account: Debit what comes in ,credit what goes out
In contention with the above rules...
plant and machinery account should be debited (it is a Real ccount/furniture is coming ine)
cash account should be credited (it is a Real account/cash is Going out)
The Journal Entry will be....
plant and machinery a/c Dr 300000
To cash a/c. 300000
(Being plant and machinery purchased)
Answered by
5
Plant and Machinery A/C. Dr. Rs.2,30,000
To Cash A/C. Rs.30,000
To Vendor A/C. Rs.2,00,000
(Being plant and machinery purchased)
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