Question

When we purchase typewriter for office use. How to show it in accounting equation??

Answer 1

Considering Typewriter is an asset it would be
Debit Typewriter
Credit Cash/Bank

Answer 2

A typewriter is generally an asset for a company.

• Considering that the typewriter is purchased with cash the accounting equation will be

Typewriter A/c Dr

Typewriter A/c Dr To cash A/c. Cr

(Being typewriter bought in the business)

• If the typewriter is bought with a cheque then the accounting equation would be:

Typewriter A/c Dr

Typewriter A/c Dr To cheque A/c. Cr

(Being typewriter bought in the business and paid by cheque)

• Lastly, If the typewriter is bought by using the bank money then the accounting equation would be:

Typewriter A/c Dr

Typewriter A/c Dr To bank A/c. Cr

( Being typewriter bought in the business and paid by the bank )