Question

write journal entry. purchased plastic bag of rs200 for goods packing by cash​

Answer 1

Answer:

RS200 credit to cash, in assets

RS200 debit to supplies, in assets

Explanation:

Remember "debit on the left, credit on the right" for when an account increases.

Apply to the accounting equation: Assets = Liabilities + Equity

An account in assets, such as cash, is debited when it increases.

Note cash was used to purchase the bags.

∵ the cash account decreases in this problem

∴ credit RS200 to the cash account

An account in assets, such as supplies, which includes plastic bags, is again debited when it increases.

Note the business gained plastic bags.

∵ the supplies account increases in this problem

∴ debit RS200 to the supplies account