Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 25 - No. 21)
When a business pays cash for supplies, which accounts are affected?
Debit Supplies; Credit Cash
Debit Cash; Credit Supplies
Debit Supplies Expense; Credit Cash
Debit Cash; Credit Supplies Expense
Explanation
Paying for supplies increases the asset account 'Supplies' (or expense if used) and decreases the asset account 'Cash'.
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