Answer to Question #204034 in Accounting for juliana

Question

1. Bought a car for his own use worth RM112,000 by paying cash (company’s money) of RM12,000 and signing a note payable for the balance.

Answer 1

Dr Car RM112,000

Cr Drawings RM12,000 

Cr Note payable RM100,000

In this case, you credit car, then credit the modes of payments which are Drawings of Rm12,000 and Note payable of RM100,000.