Question

purchase car for rs 5,00,000 by taking loan of rs 2,50,000 from bank and also gives personal car valued @ rs 1,50,000 in exchange. Balance was paid by cheque

Answer 1

1. cash. A/c. Dr. 250000
to. bank loan A/c. 250000

2. car A/c. Dr. 500000
to cash. A/c. 250000
to capital A/c. 150000
to. bank A/c. 100000