Accounting for IGCSE & O level - Accounting Procedures (Section 27 - No. 41)
What is the appropriate accounting entry for a purchase of a non-current asset?
Debit the asset account, credit the bank account.
Debit the expense account, credit the bank account.
Credit the asset account, debit the bank account.
Debit the cash account, credit the asset account.
Explanation
The purchase of an asset increases the asset account, balanced by a decrease in the bank account.
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