Ignoring GST, What Is the Correct Entry to Record the Purchase

question 29

Multiple Choice

Ignoring GST, what is the correct entry to record the purchase of a motor vehicle for $25 000 cash?

• A) Debit bank $25 000; credit motor vehicles $25 000
• B) Debit motor vehicles $25 000; credit bank $25 000
• C) Debit motor vehicles $25 000; credit capital $25 000
• D) Debit motor vehicles $25 000; credit accounts receivable $25 000

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