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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