Question

what will be the effect kn assets, liability or capital when an owner introduces capital in the bussiness​

Answer 1

Explanation:

It is a golden rule that ‘Accounting equation remains balanced all the time’. This is because of the reason that any change resulting from the business transaction also balances its equation simultaneously. Business transaction may affect either only one element (Assets, Liabilities or Capital) or two elements, out of the three elements simultaneously (i.e., Assets & Liabilities, Assets & Capital or Liabilities & Capital). In some cases, business transactions may affect all the three elements, simultaneously (i.e., Assets, Liabilities and Capital) in a single transaction.