Question

Which account shall be debited on purchase of Machinery for cash from M/s. Smita Enterprises?
A
Cash
B
Machinery
C
M/s. Smita Enterprises
D
Sales​

Answer 1

Answer:

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Explanation:

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Answer 2

The correct option is (B) Machinery which is debited when it is purchased from M/s Smita Enterprises.

What is a Purchase Acoount and Why machinery is debited when it is purchased?

• The word purchases means expenses which is a real account and as per the golden rules all the expenses and the losses are debited.
• When a machinery is purchased it is a Loss to the business and the value of the asset decreases with and increase in its liabilities.
• When there is decrease in cash the machinery account is debited and cash accont is credited.
• Journal Entry:     Machinery A/C           Dr    

                                           To Cash A/C