what will be the effect on the assests liabilities and capital of rhe following transations
Answers
S.No.
Explanation
Assets
=
Liabilities
+
Capital
Cash
+
Stock
+
Investment
+
Bank
Creditors
(a)
Increase in cash
1,20,000
Increase in capital
1,20,000
1,20,000
+
=
NIL
+
1,20,000
(b)
Increase in cash
10,000
Increase in capital (Income)
=
10,000
1,30,000
=
NIL
+
1,30,000
(c)
Decrease in investment
50,000
Decrease in cash
(50,000)
=
80,000
+
50,000
=
NIL
+
1,30,000
(d)
Increase in cash
5,000
Increase in capital (Income)
5,000
85,000
+
50,000
=
NIL
+
1,35,000
(e)
Increase in stock
35,000
Increase in creditor (Ragani)
35,000
85,000
+
35,000
+
50,000
=
35,000
+
1,35,000
(f)
Decrease in capital
(7,000)
Decrease in cash
(7,000)
78,000
+
35,000
+
50,000
=
35,000
+
1,28,000
(g)
Increase in cash
14,000
Decrease in stock
(10,000)
Increase in capital (Profit)
4,000
92,000
+
25,000
+
50,000
=
35,000
+
1,32,000
(h)
Decrease in creditors (Ragani)
(35,000)
Decrease in cash
(35,000)
57,000
+
25,000
+
50,000
=
NIL
+
1,32,000
(i)
Decrease in cash
(20,000)
Increase in bank
20,000
37,000
+
25,000
+
50,000
+
20,000
=
NIL
+
1,32,000