Brownlee Ltd is a newly established retail store selling plumbing hardware.Shown below are ledger accounts in T-account form,with entries made for the first three months of business.
-What does transaction (2)represent?

Question

Brownlee Ltd is a newly established retail store selling plumbing hardware.Shown below are ledger accounts in T-account form,with entries made for the first three months of business.  
-What does transaction (2)represent?

Quizplus · Accepted Answer

Transaction (2) represents the purchase of inventory on credit as the Accounts Payable account is credited, indicating a liability was incurred for the purchase of the inventory.

Brownlee Ltd Is a Newly Established Retail Store Selling Plumbing