Question

Purchased a machinery for 1,00,000 and spent 5,000 on its installation.
Payment for machinery was made by cheque and installation expenses were paid
in cash.​

Answer 1

Answer:

Machinery A/C Dr. 105000

To cash A/C 5000

To Bank A/C 100000

Explanation:

Asset (machinery) is increasing so it is debited and cash and bank balance is decreasing so it is credited.

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Answer 2

Answer:

Machinery A/C                Dr     Rs 1,05,000

       To cashA/c                                                                Rs 5000

        To Bank A/c                                                              Rs 1,00,000

Explanation:

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