JOURNAL ENTRY FOR PLOT PURCHASE

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Executive
207 Points Joined October 2020

WHAT WILL BE JOURNAL ENTRY FOR NBELOW AND UNDER WHICH HEAD TO SHOW

 

PLOT PURCAHSE BY THE PROPRIETOR  FOR PERSONAL USE AND PAYMNET MADE FROM FRIM ACCOUNT

1 } ADVANCE PAID TO SELLER

2} BALANCE FINAL AMOUNT PAID TO SUPPLIER

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On 18 November 2024 at 17:08 Report
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Master in Accounts & high court Advocate
8979 Points Joined December 2011

Here are the journal entries for the plot purchase by the proprietor for personal use:

 1. Advance paid to seller: Debit: Advances (Personal) [xxx] Credit: Cash/Bank [xxx] (Being advance paid to seller for purchase of plot for personal use)

1. Balance final amount paid to supplier: Debit: Investment in Plot (Personal) [xxx] Credit: Cash/Bank [xxx] (Being balance amount paid to supplier for purchase of plot for personal use) 

Note: - Advances (Personal) is a current asset account. - Investment in Plot (Personal) is a non-current asset account. - Cash/Bank is a current asset account. 

The above journal entries are from the proprietor's personal accounting perspective. If the plot is purchased for business purposes, the journal entries 

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On 18 November 2024 at 17:53
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Executive
207 Points Joined October 2020

thanks you for clarifyng

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On 19 November 2024 at 11:27


CCI Pro

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