Bought plant and machinery for the business for ₹1,50,000 and an advance of ₹ 10,000 in cash is paid to M/s Ramesh & Sons.
Analysis of transaction:
This transaction increases plant and machinery (assets) by ₹ 1,50,000, decreases cash by ₹ 10,000, and increases liabilities (M/s Ramesh & Sons. as a creditor) by ₹ 1,40,000.
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