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WAEC Accounting 2015 Objective — Question 5

Question 5 of 50 from the West African Examinations Council (WAEC) Accounting 2015 Objective paper, with the correct answer and a full explanation.

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Asset acquired is recorded by

  • A. debiting Asset Account, crediting Cash AccountCorrect
  • B. debiting Cash Account, crediting Asset Account
  • C. debiting Purchase of Business Account, crediting sale of Business Account
  • D. debiting Asset Account, crediting Purchase of Business Account

Explanation

When an asset is acquired (bought), the accounting entry is: Dr Asset Account, Cr Cash/Bank Account.

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