Question

Rs. 230000 plant and machinery purchased by paying Rs. 30000 cash immediately .... journal entry please

Answer 1

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

analyse the question- 3 accounts affected

Cash A/c - real account , in this case cash goes out of the business therefore its credited

Plant & machinery is a real A/c , where asset comes into the business hence its debited

Vendor or supplier A/c - Personal A/c - its a creditor account where we need to give money to him so it should be credited

Journal entry

Plant & machinery A/c Dr 230000

To cash A/c 30000

To vendor /supplier A/c 200000

(being plant and machinery purchased and part payment made)

Hope its useful..!!