Purchase of fixed assets on credit is originally recorded in

A. Purchases book

B. Ledger

C. Cash book

D. Journal Proper

Answer: Option D

Solution(By Examveda Team)

Purchase of fixed assets on credit is originally recorded in Journal Proper. On the assumption that the asset was purchased on credit, the initial entry is a credit to accounts payable and a debit to the applicable fixed asset account for the cost of the asset.