Question

State different kinds of transactions that increase and decrease capital.

Answer 1

Explanation:

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Answer 2

The answer is stated below:

Explanation:

• Capital is defined as the large amount of money which is used to start the business or which the person invest in order to make more amount of money. The person could the capital to refer the machinery and buildings which are required to produce the goods.

• The different kinds or the types of the transactions which increase as well as decrease the capital are:

1. The entry (credit or debit) make to:

Rise of Increase in Revenue (Credit)

Decrease in expense (Credit)

Post the fresh capital that is introduced through the owner (Credit)

Post the drawings (Debit)