Q: Machinery purchased from Umar Son's and cash paid Rs. 500,000.
11/€
A Debit Asset a/c Rs. 500,000 Credit Cash a/c Rs. 500,000
B Debit Machinery alc Rs. 500.000 Credit Cash alc Rs. 500 000
C Debit Purchase a/c Rs. 500,000 Credit Cash a/c Rs. 500.000
D Debit Cash a/c Rs. 500.000 Credit Machinery at Rs 500 000
Answers
Machinery purchased from Umar Son's and cash paid Rs. 500,000.
Answer: C) Debit Purchase A/C Rs. 5,00,000 and Credit Cash A/C Rs. 5,00,000.
Explanation:
Purchase Account is an account where all purchases of goods for trading activities are recorded.
There are two types of purchases account. I) cash purchases, ii) credit purchases
Here, goods are purchased and payment is done to the seller immediately. Hence it is cash purchase.
So here, the entry will be as follows:
Purchases A/C Dr. Rs. 5,00,000
To Cash A/C Rs. 5,00,000
As the machinery comes in the business on purchasing it, purchase A/C is debited and cash goes out, therefore cash A/C is credited.
Therefore, C) Debit Purchase A/C Rs. 5,00,000 and Credit Cash A/C Rs. 5,00,000.
Answer:
➠Machinery purchased from Umar son's and cash paid Rs. 500,000.
Answer :-
C) Debit purchase a/c Rs. 500,000 credit cash a/c Rs. 500.000.
______________________
✰Extra Information for General Knowledge :-
✯︎ Accountancy :
- Accountancy is the practice of recording , classifying , and reporting on business transactions for a business .
- It provides feedback to management regarding the financial results and status of an organisation.
✮ Objectives of Accounting :
- To maintain a systematic record of business transactions
- To ascertain profit and loss
- To determine the financial position
- To provide information to various users
- To assist the management