Class 11 Exam > Class 11 Questions > What will be the journal entry of the transac...
Start Learning for Free
What will be the journal entry of the transaction - purchased motor car for 60000 and paid 5000 for its repairs n renewal.?
Most Upvoted Answer
What will be the journal entry of the transaction - purchased motor ca...
Journal Entry for Purchasing a Motor Car and Paying for its Repairs and Renewal
Transaction Details:
The business purchased a motor car for 60,000 and spent an additional 5,000 on repairs and renewal.
Journal Entry:
The journal entry for this transaction will be:
- Debit Motor Car Account - 60,000
- Credit Cash/Bank Account - 60,000
- Debit Repairs and Maintenance Account - 5,000
- Credit Cash/Bank Account - 5,000
Explanation:
Let's break down the journal entry into two parts:
Part 1: Purchasing the Motor Car
When the business purchases the motor car, it will:
- Debit the Motor Car Account since it is an asset.
- Credit the Cash/Bank Account since it paid for the car in cash.
Part 2: Paying for Repairs and Renewal
When the business pays for repairs and renewal, it will:
- Debit the Repairs and Maintenance Account since it is an expense.
- Credit the Cash/Bank Account since it paid for the repairs and renewal in cash.
Conclusion:
The journal entry for the transaction is a debit to Motor Car Account and Repairs and Maintenance Account, and a credit to Cash/Bank Account. This entry records the purchase of the motor car and the expenses incurred to make it operational.
Community Answer
What will be the journal entry of the transaction - purchased motor ca...
Motor car a/c. Dr... 60000
repairs a/c. Dr... 5000
To. Cash a/c. 65000
repairs a/c. Dr... 5000
To. Cash a/c. 65000
Attention Class 11 Students!
To make sure you are not studying endlessly, EduRev has designed Class 11 study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Class 11.
|
Explore Courses for Class 11 exam
|
|
Similar Class 11 Doubts
Top Courses for Class 11View all
What will be the journal entry of the transaction - purchased motor car for 60000 and paid 5000 for its repairs n renewal.?
Question Description
What will be the journal entry of the transaction - purchased motor car for 60000 and paid 5000 for its repairs n renewal.? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about What will be the journal entry of the transaction - purchased motor car for 60000 and paid 5000 for its repairs n renewal.? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What will be the journal entry of the transaction - purchased motor car for 60000 and paid 5000 for its repairs n renewal.?.
What will be the journal entry of the transaction - purchased motor car for 60000 and paid 5000 for its repairs n renewal.? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about What will be the journal entry of the transaction - purchased motor car for 60000 and paid 5000 for its repairs n renewal.? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What will be the journal entry of the transaction - purchased motor car for 60000 and paid 5000 for its repairs n renewal.?.
Solutions for What will be the journal entry of the transaction - purchased motor car for 60000 and paid 5000 for its repairs n renewal.? in English & in Hindi are available as part of our courses for Class 11.
Download more important topics, notes, lectures and mock test series for Class 11 Exam by signing up for free.
Here you can find the meaning of What will be the journal entry of the transaction - purchased motor car for 60000 and paid 5000 for its repairs n renewal.? defined & explained in the simplest way possible. Besides giving the explanation of
What will be the journal entry of the transaction - purchased motor car for 60000 and paid 5000 for its repairs n renewal.?, a detailed solution for What will be the journal entry of the transaction - purchased motor car for 60000 and paid 5000 for its repairs n renewal.? has been provided alongside types of What will be the journal entry of the transaction - purchased motor car for 60000 and paid 5000 for its repairs n renewal.? theory, EduRev gives you an
ample number of questions to practice What will be the journal entry of the transaction - purchased motor car for 60000 and paid 5000 for its repairs n renewal.? tests, examples and also practice Class 11 tests.
|
|
Explore Courses for Class 11 exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup