Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 31 - No. 36)

How is the purchase of office equipment for cash recorded in the accounting records?
Debit cash, credit equipment
Debit equipment, credit cash
Debit equipment, credit accounts payable
Debit cash, credit accounts payable

Explanation

The purchase of office equipment increases the asset (office equipment) and decreases the cash account.

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