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A machinery is purchased from manish …

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A machinery is purchased from manish for 80000. pass the journal entry for this transaction and prepare the relavent leadger also.
  • 1 answers

Gaurav Seth 4 years, 2 months ago

Machinery a/c will be debited in this case as machinery is coming into the business. The Golden rule of real accounts says 'Debit what comes in, Credit what goes out'.

Cash a/c will be credited in this case as cash is going out of the business. The Golden rule of real accounts says 'Debit what comes in, Credit what goes out'.

Hence the journal entry will be-

Machinery a/c ……………….…Dr

To Cash a/c

(Being machinery purchased)

Note - If payment for machinery is made by cheque, Bank a/c will be credited instead of Cash a/ c.

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