Transactions which increases the capital but decreases the liability
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increase in share capital and increase in cash . F)Increase in one liability, decrease in another liability- Bills Payable issued to Creditors.ie., This will reduce one liability (Creditors) on the one hand and increase another liability (Bills Payable) on the other hand.
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If capital increases then liability decreases as
Assets = Capital + Liability
For Ex :- business started with cash 20,000 , goods 10,000 , debtors 5,000 , creditors 15,000
Ans : Cash A/C Dr 20,000
Stock A/C Dr 10,000
Debtor A/C Dr 5,000
To Creditor A/C 15,000
To Capital A/C 20,000
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