Question

Give one example of each of the following transactions:(2M) (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.

Answer 1

Answer:

i think (i) increase in an asset and a liability . i think it is helping you please mark me as brainliest

Answer 2

Answer:

(i) take loan from bank . Increase in cash and increase in liability

(ii) repayment of loan will decrease cash (current asset,) and decrease liability

(iii) cash for starting of business will increase cash (asset)

and will increase capital also for eg

Assets. = Liability. +. capital

0. =. 0 +. 0

starting business with cash 20000

20000. =. 0. +. 20000.

(iv). withdraw. 20000 cash from business will impact on decrease in asset and decrease capital also

Assets. =. liability. + capital

20000. =. 0. +. 20000

if one partner withdraw 20000 cash

20000-20000 =. 0. +. 20000-20000

0. =. 0. + 0

hope it is clear

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