Multiple choice

An asset was purchased for Rs. 6,60,000. Cash paid is Rs. 1,20,000 and the balance bill is drawn for 3 months. For giving effect to this transaction, fixed assets will be debited by which of the following?

  1. Rs. 1,20,000

  2. Rs. 6,60,000

  3. Rs. 5,40,000

  4. No effect

  5. Rs. 7,80,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Fixed assets will increase by Rs. 6,60,000. So, fixed assets will be debited by Rs. 6,60,000 |||| |---|---|---| |Particulars|Debit (Rs)|Credit(Rs)| |Fixed asset A/C Dr                                       |6,60,000| | |     To Cash         | |1,20,000| |     To Bills                 payable| |5,40,000|

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