Q291
Purchase of fixed assets on credit is originally recorded in
A.
Purchases book
B.
Ledger
C.
Cash book
D.
Journal Proper
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Purchase of fixed assets on credit is originally recorded in Journal Proper. On the assumption that the asset was purchased on credit, the initial entry is a credit to accounts payable and a debit to the applicable fixed asset account for the cost of the asset.