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Journal entry 1. Purchase plant of rupees 300000 by paying 15,000 cash and balance at later date?
Most Upvoted Answer
Journal entry 1. Purchase plant of rupees 300000 by paying 15,000 cash...
Purchasing a Plant for Rs. 300,000 with Partial Payment
Explanation
When purchasing a plant worth Rs. 300,000 and paying a partial payment of Rs. 15,000, it is important to understand the process and implications of this transaction. Here are the details:
Initial Payment
The initial payment of Rs. 15,000 is made upfront, which reduces the total amount due to Rs. 285,000.
Balance Payment
The balance payment of Rs. 285,000 can be made at a later date, depending on the terms and conditions of the agreement. This amount can be paid in full or in installments, as agreed upon by both parties.
Implications
It is important to note that purchasing a plant with partial payment has some implications. These include:
- Interest charges: If the balance payment is made at a later date, interest charges may apply, increasing the total cost of the plant.
- Default consequences: If the balance payment is not made according to the agreed-upon terms, legal consequences may apply.
- Opportunity cost: By paying for the plant over time, the buyer may miss out on other investment opportunities that require the same amount of money.
Conclusion
In conclusion, purchasing a plant worth Rs. 300,000 with a partial payment of Rs. 15,000 requires careful consideration of the terms and conditions of the agreement, including the implications of paying the balance at a later date. It is important to weigh the benefits and risks before making a decision.
Community Answer
Journal entry 1. Purchase plant of rupees 300000 by paying 15,000 cash...
Purchase a/c Dr. 300000
To cash a/c 15000
To creditors a/c 285000
To cash a/c 15000
To creditors a/c 285000
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Journal entry 1. Purchase plant of rupees 300000 by paying 15,000 cash and balance at later date?
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Journal entry 1. Purchase plant of rupees 300000 by paying 15,000 cash and balance at later date? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Journal entry 1. Purchase plant of rupees 300000 by paying 15,000 cash and balance at later date? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Journal entry 1. Purchase plant of rupees 300000 by paying 15,000 cash and balance at later date?.
Journal entry 1. Purchase plant of rupees 300000 by paying 15,000 cash and balance at later date? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Journal entry 1. Purchase plant of rupees 300000 by paying 15,000 cash and balance at later date? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Journal entry 1. Purchase plant of rupees 300000 by paying 15,000 cash and balance at later date?.
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