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A machine wich the stood in the book at 3 900 was sold for 1950 in part exchange of a new machine costing 8300 and the net invoice of 6350 was passed through the purchase day book?
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?A machine wich the stood in the book at 3 900 was sold for 1950 in pa...
Explanation of the Transaction:


A machine that had an original cost of 3,900 was sold for 1,950 as part of a trade-in for a new machine that cost 8,300. The net invoice for the transaction was 6,350, and it was recorded in the purchase day book. This transaction can be explained in the following sections:


Trade-in:



  • The original machine had an initial cost of 3,900.

  • The machine was sold for 1,950 as part of a trade-in deal for a new machine.

  • The trade-in value of the machine was deducted from the cost of the new machine.

  • Therefore, the cost of the new machine is reduced by the trade-in value of the old machine (i.e., 8,300 - 1,950 = 6,350).



Net Invoice:



  • The net invoice is the final amount that the customer paid for the new machine.

  • It is calculated by deducting the trade-in value from the cost of the new machine (i.e., 8,300 - 1,950 = 6,350).

  • The net invoice of 6,350 was recorded in the purchase day book, which is a record of all purchases made on credit by the company.

  • The purchase day book is used to keep track of all purchases made on credit, along with the invoice number, date, supplier name, and amount.



Conclusion:


In conclusion, the transaction involved a trade-in of an old machine for a new one, and the net invoice for the new machine was recorded in the purchase day book. The net invoice was calculated by deducting the trade-in value from the cost of the new machine, and the purchase day book is used to keep track of all purchases made on credit by the company.
Community Answer
?A machine wich the stood in the book at 3 900 was sold for 1950 in pa...
Machine (new)      8300
Loss on exchange 1950
       To machine (old)  3900
       To purchase   6350
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?A machine wich the stood in the book at 3 900 was sold for 1950 in part exchange of a new machine costing 8300 and the net invoice of 6350 was passed through the purchase day book?
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?A machine wich the stood in the book at 3 900 was sold for 1950 in part exchange of a new machine costing 8300 and the net invoice of 6350 was passed through the purchase day book? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about ?A machine wich the stood in the book at 3 900 was sold for 1950 in part exchange of a new machine costing 8300 and the net invoice of 6350 was passed through the purchase day book? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for ?A machine wich the stood in the book at 3 900 was sold for 1950 in part exchange of a new machine costing 8300 and the net invoice of 6350 was passed through the purchase day book?.
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