Question

write a journal entry for:

Purchased a new Activa RS 70000 in exchange of old costing RS 30000 which was sold @25000 to mahalaxmi automobile

(Do not write compound entry)​​

Answer 1

Answer:ok I will Edit This answer Wait a Minute

Here is your answer

Motor car a/c Dr 3,25,000

To bank a/c 3,25,000 (Being motor car purchased)

Motor car A/c Dr. 25,000

To Repairs and renewal 25,000

(Since repairs made during purchase of motor car)

Note: 25,000 spent for repairs should be capitalised along with motor car since it is assumed that repairs are made at the time of purchase.