Recording of Transactions – I · Class 11 · CBSE · Commerce Accountancy
Machinery purchased for cash is recorded in the Journal with which of the following entries?
Practice question from Recording of Transactions – I (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
easy · MCQ · Q-8F1C2F
Machinery purchased for cash is recorded in the Journal with which of the following entries?
- A.Debit Cash Account, Credit Machinery Account
- B.Debit Machinery Account, Credit Cash AccountCorrect answer
- C.Debit Purchases Account, Credit Cash Account
- D.Debit Machinery Account, Credit Capital Account
Solution
By applying the rules of debit and credit, asset (Machinery) increases so it is debited, and asset (Cash) decreases so it is credited.
More from Recording of Transactions – I
- Which of the following vouchers is prepared for recording a cash purchase of goods?
- Goods costing Rs. 10,000 were given away as charity. Which journal entry is correct?
- What is the primary book of original entry in which all business transactions are recorded in chronological order?
- Which of the following accounts must be credited when a business owner withdraws goods for personal use?
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