Question

Q.8 Give necessary transactions for the following effect of increase and decrease in Assets,
Capital and Liabilities.
1)
Increase in Assets
Decrease in Assets
2)
Increase in Capital
Decrease in Assets
3)
Decrease in Liabilities
Decrease in Assets
4)
Decrease in Assets
Decrease in Capital​

Answer 1

Answer:

Payment of promissory not with cash- liability and cash (assets) decreases.

Material return to supplier- Creditors (liability) and goods (assets) decreases.

Redemption of debenture-Debenture (liability) and cash(assets) decreases.