Question

Question for effect on accounting equation. Debtor paid amount due. What will increase and decrease?

Answer 1

Answer:

Asset = Liability + Capital , So,

asset side in debtor it will decrease and cash increase

• Explanation:

asset

Debtor ----> Decrease

And Cash -------> increase

but if debtor paid through bank than it will increase in bank and if debtor paid in cash than cash will increase

hope you got it