The Purchase of An Asset For Cash Or Bank Affects On Which Accounts
The purchase of an asset account for Cash or Bank affects asset account and cash / bank account but the Total Assets on Accounting Equation or Balance Sheet remain unchanged. For example, if a company purchased furniture for cash / bank Rs. 50000, then we record the following entry as shown below: Furniture a/c 50000 Cash a/c / Bank a/c 50000 ...