Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 17 - No. 38)
If a company buys a building and pays in cash, what is the journal entry?
Debit Building, Credit Cash
Debit Cash, Credit Building
Debit Building, Credit Accounts Payable
Debit Cash, Credit Accounts Payable
Explanation
The purchase of the building increases the asset account 'Building' and decreases the asset account 'Cash'.
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