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Question 15 - C_TS410_2022 discussion

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You post an invoice to purchase a company car. What accounts are posted in the journal entry? Note. There are 3 correct answers to this question.

A.

Supplier account

Answers
A.

Supplier account

B.

Asset account

Answers
B.

Asset account

C.

Material account

Answers
C.

Material account

D.

Tax account

Answers
D.

Tax account

E.

Customer account

Answers
E.

Customer account

Suggested answer: A, B, D

Explanation:

When posting an invoice for the purchase of a company car, the journal entry typically involves the following accounts:

Supplier account (A): This account is credited to record the liability to the supplier for the purchase of the car.

Asset account (B): This account is debited to reflect the addition of the company car as a fixed asset in the company's balance sheet.

Tax account (D): If the purchase involves sales tax or VAT, this account is also debited to record the tax component of the car's purchase.

A Material account (C) is typically used for inventory items and consumables, not for capital assets like company cars.

A Customer account (E) is used for recording transactions with customers, such as sales, and is not relevant to the purchase of an asset from a supplier.

asked 31/10/2024
PATRICK ADUSEI
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