Question

What is the journal entry for cash paid to precision machines

Answer 1

Answer:

Machinery can be purchased on cash and on credit.

If purchased on cash the journal entry would be-

Machinery A/C Dr. ………………..(Amount)

To Cash A/C ……………………………………….(Amount)

If on credit

Machinery A/C Dr. ……………………………(Amount)

To Creditor/Supplier A/C ………………………………(Amount)

If partially on cash and partially on credit

Machinery A/C Dr. ……………………….(Amount)

To Cash A/C ………………………………………………(Amount paid in cash)

To Creditors/Suppliers A/C …………………………(Amount held on credit)

**all amount in positive

Explanation:

Answer 2

Answer:

Cash paid to precision machines