Give one example of each of the following transactions. Increase in an asset and a liability
Give one example of each of the following transactions:
(I) Increase in an asset and a liability.
(ii) Decrease in an asset and a liability
(iii) Increase in assets and capital
(iv) Decrease in assets and capital
Anurag Pathak Answered question June 5, 2024
Solution:-
(I) Purchase of an asset on credit:- It will increase asset and also increase the creditors (liability) of asset.
(ii) Payment of a liability:- It will decrease cash (asset) and decrease the liability.
(iii) Capital introduced by proprietor:- It will increase cash (asset) and also increase the capital.
(iv) Drawings or Expenses:- Drawings or expenses will decrease (cash) and will also decrease the capital.
Anurag Pathak Answered question June 5, 2024
