Question

Purchased new machine for Rs.1,70,000 and issued cheque for the same. The account to be debited is_______.

Answer 1

Machinery account

As machinery is purchased so it will be debited.

Answer 2

We are asked a question as to what account will be debited when machinery is bought. The correct answer is the machinery account.

• Since a new machine has been purchased, the account that has to be debited is Machine A/C.
• Since a cheque has been issued for the purchase of the machine, the transaction is complete and the entry in the books of accounts will be to debit the Machine A\C.
• According to the golden rule of accounts, we are required to debit what is coming into the organization.
• The thing that is coming into the organization is Machinery.
• So, therefore, the correct answer is Machinery.

PROJECT CODE: #SPJ3