BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Journal Entry for Purchasing Machine in Cash is?
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Purchase A/C (Debit)-To Cash A/C (Credit)
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Purchase A/C (Debit)-To Machine A/C (Credit)
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Machine A/C(Debit)-To Purchase A/c (Credit)
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Machine A/C (Debit)-To Cash A/C (Credit)
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Explanation:
Detailed explanation-1: -What the journal entry to record a purchase of equipment? The purchase of property, plant, or equipment results in a debit to the asset section of the balance sheet. The credit is based on what form of payment you use as the customer. If you use cash, then you would credit cash.
Detailed explanation-2: -If there is an increase in the value of plant & machinery, we debit the plant and machinery account and credit the revaluation account.
Detailed explanation-3: -Credit purchase of machine is entered in purchase journal.
Detailed explanation-4: -Purchases account is debited when machinery is purchased.
There is 1 question to complete.