Question on: JAMB Accounting - 2024
Tolu purchased a machine for #6,000 on credit. The effect is to debit the supplier and credit the account of the
A
machinery
B
creditor
C
cash
D
debtor
Ask EduPadi AI for a detailed answer
Correct Option: A
The correct entry when a machine is purchased on credit is:
Debit: Machinery (asset increases)
Credit: Creditor (liability increases)
This reflects acquiring an asset while owing the supplier.
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