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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Additions
Morning Mr John..What’s additions in for example vehicle’s cost?
I came across T account of Motor vehicles and there’s additions in debit side …Thank you.
“Additions” means that they have bought more (they have added more vehicles).
So when they buy more, the entry is Cr Cash (or payables if bought on credit) and Dr Motor Vehicles.