BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Vendor a/c will be dr. and Machinery a/c will be cr,
|
|
|
Purchase a/c will be and Vendor a/c will be cr,
|
|
|
Machinery a/c will be dr. and Vendor a/c will be cr,
|
|
|
Purchase a/c will be dr. and Machinery a/c will be cr,
|
Detailed explanation-1: -Which account will be credited when Machinery is purchased? Machinery Purchase results in crediting the Bank account in case of Cash payment. However, Supplier (Liability) GL is credited for credit transactions.
Detailed explanation-2: -Machinery account is debited when expenses are paid for installation of machinery. Was this answer helpful?
Detailed explanation-3: -Purchase Credit Journal Entry is the journal entry passed by the company in the purchase journal of the date when the company purchases any inventory from the third party on the terms of credit. The purchases account will be debited.
Detailed explanation-4: -When goods are sold on credit, debtors which is an asset account is debited as money is receivable from the customers and sales which is a revenue account is credited.