If one of the cars purchased by a car dealer is used for business purpose instead of resale then it ...........

Principles of Accounting & Financial Management Concepts of Accounting

If one of the cars purchased by a car dealer is used for business purpose, instead of resale, then it should be recorded by_____

Dr Drawing A/c & Cr Purchases A/c

Dr Office Expenses A/c & Cr Motor Car A/c

Dr Motor Car A/c & Cr Purchases A/c

Dr Motor Car & Cr Sales A/c

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Explanation:

The purpose of accounting is to accumulate and report on financial information about the performance, financial position, and cash flows of a business. This information is then used to reach decisions about how to manage the business, or invest in it, or lend money to it. This information is accumulated in accounting records with accounting transactions, which are recorded either through such standardized business transactions as customer invoicing or supplier invoices, or through more specialized transactions, known as journal entries.