Question

Give two fold effect of the following transactions
1) Brought Rs 50,000 to start the business.
2) Deposited Rs 2,000 in SBI.
3) Purchase goods of Rs 8,000 from Raj.​

Answer 1

Answer:

1) increase in capital and asset side

2) increase in asset side in bank account and decrease on asset side in cash

3) increase in stock in assets and decrease in bank if goods are purchased on credit