Question

Q.8 Give necessary transactions for the following effect of increase and decrease in Assets,
Capital and Liabilities.
Increase in Assets
Decrease in Assets
Increase in Capital
Decrease in Assets
Decrease in Liabilities
Decrease in Assets
Decrease in Assets
Decrease in Capital​

Answer 1

Answer:

Explanation:

increase in assets - during the year jack purchased equipment costing $5000.

decrease in assets - during the year jack sold a machine for $3200.

increase in capital - jack invested $4000 from his own savings into the business.

decrease in liabilities - jack paid of short term loan of $3000

decrease in capital - jack took cash from business for personal use of $2000.