Question

Underline the two items that are affected.

State whether each item is increasing or decreasing.

1.Sold office machinery for cash

2. Bought motor lorry for cash

3. Sold motor lorry for cash

4. Bought motor van by cheque

5. Bought office furniture by cheque

Answer 1

1. Decrease in inventory, increase in cash
2. Increase in machinery (motor lorry) , decrease in cash
3. Decrease motor lorry, increase cash
4. Increase machinery and equipment, increase in accounts payable
5. Increase in office furniture , increase in accounts payable