If we purchase any fixed asset in credit, we can pass it from A. Payment mode B. Receipt mode C. Purchase mode D. Contra mode

April 15, 2024 by rawan239

a company owns and uses for more than one year. Fixed assets can include land, buildings, equipment, and vehicles. When a company purchases a fixed asset on credit, it records the purchase in the purchase mode. This means that the company records the asset as an asset and the liability for the amount owed to the supplier as a liability.

The other options are incorrect because:

• Payment mode is used to record payments made to suppliers.
• Receipt mode is used to record receipts from customers.
• Contra mode is used to record adjustments to assets and liabilities.

I hope this helps! Let me know if you have any other questions.