Double-entry for cash asset purchase

Steps:

• Identify transaction: Kai acquires office equipment (asset increase) and pays immediately via bank (asset decrease).
• Apply double-entry rule: Debit accounts for increases in assets; credit for decreases.
• No supplier liability: Payment is instant, so exclude Meena's account.
• Record: Debit office equipment; credit bank.

Why D is correct:

• Double-entry bookkeeping requires debiting the acquired asset (office equipment) and crediting the payment method (bank) to reflect equal increases/decreases.

Why the others are wrong:

• A: Treats it as settling a debt to Meena, but no prior liability exists.
• B: Implies credit purchase from Meena, ignoring immediate bank payment.
• C: Reverses asset flow by debiting supplier and crediting equipment, which decreases the asset incorrectly.

Final answer: D