Borrowed money of Rs.5,00,000/- for business, mention the impact of the transaction
A. Increase in assets and Increase in Liability
B. Decrease in assets and Decrease in Liability
C. Increase in assets and Increase in Equity
D. Decrease in assets and Increase in Equity
Answer:A
Borrowed money of Rs.5,00,000/- for business, mention the impact of the transaction
A. Increase in assets and Increase in Liability B. Decrease in assets and Decrease in Liability C. Increase in assets and Increase in Equity D. Decrease in assets and Increase in Equity
Explanation: Due to the borrowing, Cash will flow into the business i.e. Increase in asset,s and Liability will be increased i.e. Increase in Liability