Question

purchase of assets for ₹50,000
on cash affected on which account
a) assets
b) cash
c) both a and b
d) none of these​

Answer 1

Answer:

c I think this helps you

Answer 2

Answer:

For the given question, the correct answer is option c that is "both a and b".                            

Explanation:

For purchasing assets, an asset A/c increased the value of assets. So, according to golden rules, we should debit asset A/c for an increase of assets.

Further, on  Purchases of Asset in Cash,  there is an in the reduction of Cash, which is an Asset. When an asset reduces, we should credit asset A/c according to the Rules of Debit and Credit. And we also should credit cash A/c.

Hence the correct entry is:

Asset A/c Dr. 50,000  

To Cash A/c 50,000