1. State which account should be debited. Bought a car paying by cash. * car
cash
both of them

3. Which account should be credited in the following transaction? Bought inventory on credit. *
inventory
accounts receivable
accounts payable

What is the effect of the following transaction? Bought motor van paying by cheque. *
debit the asset account; credit the liability account
credit the asset account; debit the liability account
debit the asset account; credit the asset account

What is the effect of the following transaction? Paid a supplier by cheque. *
Debit the bank account; credit the accounts payable account
Debit the accounts payable account; credit the bank account
Debit the bank account; debit the accounts payable account

6. What is the effect of the following transaction? Bought some inventory on credit. *
Debit the asset account; credit the accounts payable account
Debit the accounts payable account; credit the inventory account
Debit the inventory account; credit the cash account

7. Which two accounts are affected in the following transaction? Paid suppliers with a cheque, $200. *
Bank; Accounts payable
Cash; Accounts payable
Accounts receivable; Bank

8. Which two accounts are affect in the following transaction? Received cheque of $300 from our debtors. *
Bank; accounts payable
Bank; accounts receivabe
Bank; Cash