0
A purchase of an asset for cash will increase total assets(casH) and increase total owner's equity (capital).
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
What is purchase of assets?
Asset A/c Dr To Bank/Cash Ac
What is the Journal entry to purchase of an asset?
debit assetscredit cash / bank
What will increase one asset and decrease another asset with no effect on liability or owner s equity?
Purchase an asset on cash will increase the purchased asset while reduce the cash amount and no impact on liability or equity section.
What is the journal entry for purchase of an asset?
[Debit] Asset Account xxxx [Credit] Cash / bank account xxxx
Is cash on hand an asset?
Cash on hand is an asset. It will be included as a current asset and is often called "petty cash"
What is purchase of assets?
Asset A/c Dr To Bank/Cash Ac
What is the Journal entry to purchase of an asset?
debit assetscredit cash / bank
What is the journal entry for a cash purchase?
Debit Asset a/c if asset a/c is bought and credit Cash a/c OR if these are sundry supplies debit that head and credit cash acct
What will increase one asset and decrease another asset with no effect on liability or owner s equity?
Purchase an asset on cash will increase the purchased asset while reduce the cash amount and no impact on liability or equity section.
What is the journal entry for purchase of an asset?
[Debit] Asset Account xxxx [Credit] Cash / bank account xxxx
Is purchase for resale is an expenses?
No. Purchases for resale is treated as current asset.Accounting entry:Step 1: Purchase of equipments for resale in cashDebit Equipments (Increase in asset)Credit Cash (Decrease in asset)Step 2: Resale of equipments in cashDebit Cash (Increase in asset)Credit Equipment (Decrease in asset)
Where would the purchase on noncurrent assets be reported in the statement of cash flows?
Purchase of fixed asset is shown under cash flows from investing activities as an outflow of cash because purchase of assets is an investing activity and it causes reduction of cash flow.
What is capital budgeting analysis?
Capital budgeting analysis is the analysis of all cash inflows and outflows related with the underlying asset purchase decision to evaluate the cost and benefit of purchase of asset.
Is cash on hand an asset?
Cash on hand is an asset. It will be included as a current asset and is often called "petty cash"
Can a transaction that causes an increase in an asset also cause a decrease in another asset?
Yes. If you purchase a new desk, your furniture asset account would increase, and your cash asset account would decrease.
Journal entry for new car purchase?
[Debit] Car Asset [Credit] Cash / bank
Is cash a probatable asset?
Yes. Cash is a probate asset.
