Company purchased a machine on credit from Mr. Ram for Rs 1,00,000. Now a cheque has been issued in his favor. Which of the following is correct?

Debit Mr. Ram`s account & credit Bank account by Rs 1,00,000

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Debit bank account & credit Mr. Ram`s account by Rs 1,00,000

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Debit creditors account & credit debtors account by Rs 1,00,000

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Debit Machine account & credit Bank account by Rs 1,00,000

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Solution

The correct option is A
Debit Mr. Ram`s account & credit Bank account by Rs 1,00,000

Debit Mr. Ram`s account & credit Bank account by Rs 1,00,000.

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Similar questions

Q. Mr. A has purchased some goods on credit from Ram. Which of the following is correct ?

The passbook of Mr. Mohit current account showed a credit Balance of Rs 20,000 on dated December 31, 2016. Prepare a Bank Reconciliation Statement with the following information.

(i)	A cheque of Rs 400 drawn on his saving account has been shown on current account.
(ii)	He issued two cheques of Rs 300 and Rs 500 on of December 25, but only the I^st cheque was presented for payment.
(iii)	One cheque issued by Mr. Mohit of Rs 500 on December 25, but it was not presented for payment whereas it was recorded twice in the cash book.

Mr. Ravi has bought goods worth Rs 5,00,000 from our company & issued a cheque on the same day. 10 days later, when the cheque was presented, there were insufficient funds in his account. What happens to the cheque?

Rectify the following errors.

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2) Sold goods to Ramakant Rs 580 has been entered in the Purchase book as Rs 850
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4) Total of the sales return book is wrongly taken more by Rs 120.
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Q. The pass book of Mr. Mohit current account showed a credit Balance of Rs.20,000 on dated December 31, 2005. Prepare a Bank Reconciliation Statement with the following information.
i) A cheque of Rs.400 drawn on his saving account has been shown on current account.
ii) He issued two cheques of Rs.300 and Rs.500 on of December 25, but only the 1st cheque was presented for payment.
iii) One cheque issued by Mr.Mohit of Rs. 500 on December 25, but it was not presented for payment whereas it was recorded twice in the cash book.

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Company purchased a machine on credit from Mr. Ram for Rs 1,00,000. Now a cheque has been issued in his favor. Which of the following is correct?

The correct option is A Debit Mr. Ram`s account & credit Bank account by Rs 1,00,000 Debit Mr. Ram`s account & credit Bank account by Rs 1,00,000.

The correct option is A
Debit Mr. Ram`s account & credit Bank account by Rs 1,00,000

Debit Mr. Ram`s account & credit Bank account by Rs 1,00,000.