• 1 Marks

FA – May 2013 – L1 – SA – Q32 – Double Entry Accounting Principles

This question tests the double-entry accounting treatment for the cash purchase of a non-current asset.

What are the accounting entries to record the cash purchase of a non-current asset?

Dr Non-Current Assets, Cr Bank or Cash

Explanation:
When a non-current asset is purchased with cash, the asset account is debited to record the acquisition, and the cash or bank account is credited to reflect the outflow of cash.

Back to all questions

Pick a Form

Professional Tutor Application Form
Academic Tutor Application Form
Student Tutor Application Form