Accounting question for cash

example a business person purchase of new apartment value rs:30 lacs .but cash on hand balance available rs:25 lacs in books as on apartment purchase date.
question:
if a person different cash amount (rs:30 lacs -rs:25 lacs) rs:5 lacs how the adjustment procedure in books.(cash increased)
Replies (2)
Quick Summary
This discussion addresses an accounting query regarding the purchase of a new apartment valued at Rs 30 lacs when the available cash balance is only Rs 25 lacs. It explores how to adjust the business's books to reflect the Rs 5 lacs difference, effectively increasing the cash account. The proposed solution involves recording a cash purchase of Rs 25 lacs and a credit purchase of Rs 5 lacs, with the total amount settled via the bank account.

Cash purchase 25 

Credit purchase 5

To bank a/c

Cash purchase 25 

Credit purchase 5

To bank a/c 25

To payables 5

 

slow network

 

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