Question

purchased plant from Mukesh for rs 15000 and paid rs 100 as cartage for bringing the plant to the factory and another rs 20 as installation charges. What is journal entry .

we should not credit Cash A/C because it seems that plant is purchased on credit basis so name of creditor should be on credit side.

Answer 1

Hyy hope it will help you
Plant A/c. Dr. 15000
Cartage A/c Dr. 100
Installation charges A/c Dr. 20
To Mukesh A/c. 15120
(Being a plant purchased on credit , cartage and installation charges paid.)