Question

Purchased 4 Motor Cars @ 1,20,000 each from Maruti Ltd. for stock.​what will be the journal entry passed.

Answer 1

Explanation:

motor cars a/c Dr. ₹4, 80000

to maruti ltd. a/c 4,80000

(being motor cars bought for cash)

Answer 2

motor cars a/c Dr. ₹4, 80000

to cash a/c 4,80000