Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 33 - No. 19)
On Sept 5, a cheque was issued to pay for a new delivery van. Which accounts are affected, and how?
Cash decreases; Delivery van increases.
Cash increases; Delivery van decreases.
Cash decreases; Delivery van decreases.
Cash increases; Delivery van increases.
Explanation
Paying for the van reduces cash (asset) and simultaneously increases the value of the delivery van (another asset).
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