New Enroll for RBI, PFRDA & NABARD Intro Class! April 18 at 9:15 PM

    Question

    What is the journal entry for purchasing Machinery from

    M/S Darjeeling?
    A Machinery A/c Dr. To Cash Correct Answer Incorrect Answer
    B Machinery A/c Dr. To M/S Darjeeling Correct Answer Incorrect Answer
    C M/S Darjeeling Dr. To Machinery Correct Answer Incorrect Answer
    D M/S Darjeeling Dr. To Cash Correct Answer Incorrect Answer

    Solution

    Being purchased a machinery, increase an asset will be debited and increase in liability will be credited. Here, the payment has not been made in cash, therefore Cash A/c won’t be credited.

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