Purchase of fixed assets on credit terms

C- fixed assets account will be debt

C. fixed assets account will be debit and supplier will be credit

(C) is the Correct Ans.

On Purchase of Fixed Asset on Credit,

Dr. Fixed Assets    XX

Cr. Accounts Payable   XX

On Payment on Future,

Dr. Accounts Payable   XX

Cr. Cash                                 XX

Fixed Account is Debited and Supplier will be Credited

Fixed Assets Account will be debited

Sundry Creditors will be credited.

 C----- 

- F.A account will be debt

C-Fixed assets account will be debit is correct answer