Bought motor vehicle ₦60 paying by cheque. The effect of the transaction will be

A.

Increase in assets of motor vehicle account

B.

Decrease in assets of motor vehicle account

C.

Increase in assets of bank account

D.

Increase in liabilities of bank account

Correct answer is A

The motor vehicle account is the receiver while bank account is giving out. Therefore, there will be an increase in motor account and a decrease in bank account.