Question

Purchases of a Machinery for Rs. 55,000, payment made by cheque, will be recorded in ?​

Answer 1

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Explanation:

Machinery a/c.....Dr ㅤㅤㅤㅤ₹55,000

ㅤㅤTo Bank a/cㅤㅤㅤㅤㅤㅤ₹55,000

(Being the machinery purchased and payment made )

We purchase machinery of ₹55,000

and made payment by cheque it means our machinery account will be increase or in other words it will be debit

why debit .??

The machinery account will be debit because it's an asset and whenever asset increase it will be debit.

On another side we made payment by cheque it means our bank account will be decreased by some amount.so ,it will be credit

Take a look on 5 golden rules of accounting :-

• Asset ↑ (debit) ↓(credit)
• Expense↑(debit)↓(credit)
• Capital↑(credit)↓(debit)
• liability↑(credit)↓(debit)
• Revenue (income)↑(credit)↓(debit)

Answer 2

Answer:

Machinery a/c.....Dr ㅤㅤㅤㅤ₹55,000

ㅤㅤTo Bank a/cㅤㅤㅤㅤㅤㅤ₹55,000

(Being the machinery purchased and payment made )

We purchase machinery of ₹55,000

and made payment by cheque it means our machinery account will be increase or in other words it will be debit

why debit .??

The machinery account will be debit because it's an asset and whenever asset increase it will be debit.

On another side we made payment by cheque it means our bank account will be decreased by some amount.so ,it will be credit

Take a look on 5 golden rules of accounting :-

• Asset ↑ (debit) ↓(credit)
• Expense↑(debit)↓(credit)
• Capital↑(credit)↓(debit)
• liability↑(credit)↓(debit)
• Revenue (income)↑(credit)↓(de)