Bought motor vehicle ₦60 paying by cheque. The effect of the transaction will be
-
Increase in assets of motor vehicle account
- Decrease in assets of motor vehicle account
- Increase in assets of bank account
- Increase in liabilities of bank account
The correct answer is: A
Explanation
The motor vehicle account is the receiver while bank account is giving out. Therefore, there will be an increase in motor account and a decrease in bank account.