Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 17 - No. 9)
What is the impact of paying cash for new lighting fittings?
Debit cash, Credit lighting fittings
Debit lighting fittings, Credit cash
Debit cash, Credit bank
Debit bank, Credit lighting fittings
Explanation
The company would debit the lighting fittings, showing an increase in the asset (the new lighting) and credit cash (decrease) due to the cash outflow to pay the asset.
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