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Purchased an old machinery for Rs.100000 and spend Rs. 5000 on its carriage and Rs. 20000 on its immediate repairs. Entire payment is made by cheque. Which account will be debited and with what amount. *?
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Purchased an old machinery for Rs.100000 and spend Rs. 5000 on its car...
Accounting Entry for Purchasing Old Machinery
There are several accounts that will be affected when purchasing an old machinery, including:
1. Machinery Account - This account will be debited as it is the asset acquired.
2. Carriage Account - This account will be debited as it is an expense incurred for transporting the machinery.
3. Repairs Account - This account will be debited as it is an expense incurred for repairing the machinery.
4. Bank Account - This account will be credited as the payment is made by cheque.
The amount to be debited in each account is as follows:
- Machinery Account: Rs. 100,000
- Carriage Account: Rs. 5,000
- Repairs Account: Rs. 20,000
The total amount to be debited is Rs. 125,000 (Rs. 100,000 + Rs. 5,000 + Rs. 20,000).
The accounting entry for the transaction would be as follows:
Machinery Account - Debit - Rs. 100,000
Carriage Account - Debit - Rs. 5,000
Repairs Account - Debit - Rs. 20,000
Bank Account - Credit - Rs. 125,000
This transaction would increase the value of the Machinery account and also increase the amount of expenses incurred for the carriage and repairs of the machinery.
It is important to keep accurate records of all transactions to ensure that the financial statements accurately reflect the financial position of the business.
There are several accounts that will be affected when purchasing an old machinery, including:
1. Machinery Account - This account will be debited as it is the asset acquired.
2. Carriage Account - This account will be debited as it is an expense incurred for transporting the machinery.
3. Repairs Account - This account will be debited as it is an expense incurred for repairing the machinery.
4. Bank Account - This account will be credited as the payment is made by cheque.
The amount to be debited in each account is as follows:
- Machinery Account: Rs. 100,000
- Carriage Account: Rs. 5,000
- Repairs Account: Rs. 20,000
The total amount to be debited is Rs. 125,000 (Rs. 100,000 + Rs. 5,000 + Rs. 20,000).
The accounting entry for the transaction would be as follows:
Machinery Account - Debit - Rs. 100,000
Carriage Account - Debit - Rs. 5,000
Repairs Account - Debit - Rs. 20,000
Bank Account - Credit - Rs. 125,000
This transaction would increase the value of the Machinery account and also increase the amount of expenses incurred for the carriage and repairs of the machinery.
It is important to keep accurate records of all transactions to ensure that the financial statements accurately reflect the financial position of the business.
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Purchased an old machinery for Rs.100000 and spend Rs. 5000 on its carriage and Rs. 20000 on its immediate repairs. Entire payment is made by cheque. Which account will be debited and with what amount. *?
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Purchased an old machinery for Rs.100000 and spend Rs. 5000 on its carriage and Rs. 20000 on its immediate repairs. Entire payment is made by cheque. Which account will be debited and with what amount. *? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Purchased an old machinery for Rs.100000 and spend Rs. 5000 on its carriage and Rs. 20000 on its immediate repairs. Entire payment is made by cheque. Which account will be debited and with what amount. *? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Purchased an old machinery for Rs.100000 and spend Rs. 5000 on its carriage and Rs. 20000 on its immediate repairs. Entire payment is made by cheque. Which account will be debited and with what amount. *?.
Purchased an old machinery for Rs.100000 and spend Rs. 5000 on its carriage and Rs. 20000 on its immediate repairs. Entire payment is made by cheque. Which account will be debited and with what amount. *? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Purchased an old machinery for Rs.100000 and spend Rs. 5000 on its carriage and Rs. 20000 on its immediate repairs. Entire payment is made by cheque. Which account will be debited and with what amount. *? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Purchased an old machinery for Rs.100000 and spend Rs. 5000 on its carriage and Rs. 20000 on its immediate repairs. Entire payment is made by cheque. Which account will be debited and with what amount. *?.
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