Question

Purchased an existing business with following items :
Stock 6000
Debtors 50000
Machinery 40000
Creditors 50000
The purchase price agreed upon was rs.100000 and it was paid immediately
Pass a journal entry

Answer 1

Hey mate ur answer is ..
Stock a/c Dr 60000
debtors a/c Dr 50000
machinery a/c Dr 40000
to creditors a/c. 50000
to capital a/c. 100000(as capital= assets-liabilities)
(being opening balance brought forward)
_______________________________
Purchase a/c Dr 100000
to cash a/c. 100000
_______________________________hope it helps...