What is ledger entry of purchased machinery and paid by cheque?

Question

Answer

Heading: Purchased Machinery Ledger Entry
Explanation:
When machinery is purchased and payment is made by cheque, the ledger entry involves recording the transaction in the appropriate accounts.
Heading: Debit Entry
Key Point:
The machinery account is debited to reflect the increase in machinery assets.
Heading: Credit Entry
Key Point:
The bank account is credited to show the decrease in cash due to the cheque payment.
Heading: Example
Key Point:
For example, if machinery costing $10,000 is purchased and paid for by cheque, the ledger entry would be:
- Machinery Account Debit: $10,000
- Bank Account Credit: $10,000