Question

write a journal entry for purchased scooter from regent automobiles on credit. all initial costs including insurance borne by the vendor​

Answer 1

Answer:

scooter A/C Dr.

To Regent automobilesA/C.

Explanation:

• scooter is a asset, according to real A/C debit what comes in so the scooter A/C will be debited.
• cash is also an asset, so according to real A/C credit what goes out so the cash A/C will be credited
• first insurance, borne is included in initial cost so no need to record separately.

Answer 2

Answer:

Explanation:

if purchased on cash:

Scooter a/c Dr…

             To Cash/bank a/c

If purchased on credit:

Scooter a/c Dr…

      To creditor's a/c

Scooter for office use is an asset for the company. So it should be debited and the creditor should be credited if purchased on credit, cash or bank account.