A Business Buys Office Equipment On Account. What Effect Will This Transaction Have On The Accounts?
When a business Bought Or Purchased Office Equipment On Account Or On Credit , then office equipment account is debited as it is coming into the business and accounts payable / creditor account is credited as the business is liable to pay the amount of office equipment to suppliers or vendors on later date as agreed upon the Management of the business and the supplier or vendor or creditor. Example: Mr. A, as a Sole Proprietor, bought office equipment of Rs. 30000 from Mr. B On Credit / Account. What is the journal entry for purchasing of office equipment and the effect of this transaction on the accounting equation? The journal entry to record for buying or purchasing office equipment on account is shown below: Office Equipment a/c 30000 ...