Example of supplies on hand, Accounting Basics

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Q. Example of supplies on hand?

On 2010 December 4 Micro Train Company buy supplies for USD 1400 and recorded the transaction as follows

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Micro Train's two accounts recitations to supplies are Supplies on Hand (an asset) and Supplies Expense. Subsequent to this entry is posted, the Supplies on Hand account shows a debit balance of USD 1400 and the Supplies Expense account has a zero balance as shown in the following T-accounts

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