Question

What would be the impact on Accounting Equation of Introduction of Capital into business amounting to Rs. 1,10,000 ?​

Answer 1

Answer:

Explanation:

Introduction of Capital into business by way of cash would result in increase in cash , and cash  is an Asset. So this transaction would  increase an Assets by Rs. 110,000 .

Introduction of capital increases the capital base of the business, and hence it will result in increase in capital by Rs. 110000