Private Motor Car Worth 25000 for Business Show Journal Entry

Heading: Introduction
Business transactions refer to the exchange of goods or services between two parties that result in a financial impact on the business. These transactions are recorded in the company's financial statements to track the inflow and outflow of cash and to keep the business financially healthy.

Heading: Private Motor Car Worth 25000 for Business Show
Suppose a company purchases a private motor car worth 25000 for the purpose of showcasing it at a business show. In this case, the following journal entry will be made:

Heading: Journal Entry
Date | Particulars | Debit | Credit
---|---|---|---
[Date of Purchase] | Motor Car A/c | 25000 |
| Cash/Bank A/c | | 25000

Explanation:
• The first line of the entry mentions the date of purchase.
• The second line mentions the particulars, which is the Motor Car A/c – this account is debited as the company has acquired a new asset.
• The third line mentions the debit amount of 25000, which is the cost of the motor car.
• The fourth line mentions the Cash/Bank A/c, which is credited with the same amount of 25000.

Heading: Conclusion
In conclusion, business transactions are essential to keep track of the financial health of a company. The purchase of a private motor car worth 25000 for showcasing at a business show is a capital expenditure, and the above journal entry should be made to record the transaction.

Vechicle. A/C. Dr. 25000 To Capital A/C 25000