Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 29 - No. 36)

What would be the entry for the purchase of an asset on credit?

Debit Asset, Credit Cash

Debit Asset, Credit Accounts Payable

Debit Cash, Credit Asset

Debit Accounts Payable, Credit Asset

A debit to the asset account increases the asset value, and a credit to accounts payable indicates an obligation to pay the vendor.