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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