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Commerce · Q73

Accounting

Graduate and Post Graduate · Commerce · question 73

Q73

Which of the following accounts will be credited if a company purchases building for cash?

A.
Capital account
B.
Fixed assets account
C.
Building account
D.
Cash account
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Cash account will be credited if a company purchases building for cash. Cash is credited because cash is an asset account that decreased because cash was used to pay the bill.