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GCE Financial Accounting 1990 Question 28

Question 28

Capital and Revenue Expenditure

The purchase of a typewriter for office use for ₦2,500 should be debited to

  1. A.bank account
  2. B.sales account
  3. C.cash account
  4. D.purchases account
  5. E.assets account.
Show the answer and explanation

Answer: E (assets account.)

Explanation

A typewriter for office use is a fixed asset, not goods for resale, so it is debited to an asset account.