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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

To purchase an asset such as office equipment on account, you would credit which account?

(a) Cash

(c) Accounts Payable

(b) Accounts Receivable

(d) Capital

To determine

Identify the account that will be credited on purchase of office equipment on account.

Explanation

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Ø  Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Ø  Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, and expenses.

DateAccounts title and explanation

Post.

Ref.

Debit

($)

Credit

($)

Office  equipment  xxxx 
 

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