Question on: JAMB Accounting - 2019

Bought motor vehicle ₦60 paying by cheque. The effect of the transaction will be

A

Increase in assets of motor vehicle account

B

Decrease in assets of motor vehicle account

C

Increase in assets of bank account

D

Increase in liabilities of bank account

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Correct Option: A

There will be an increase in motor vehicle account and a decrease in the bank account because the vehicle account is the receiver while the bank account is giving out.

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