Indicate how Accounting Equation is affected if payment is made to a creditor?
Download our app for free and get started
Cash decreases and so does the liability (creditor).
Download our appand get started for free
Experience the future of education. Simply download our apps or reach out to us for more information. Let's shape the future of learning together!No signup needed.*
Similar Questions
- 1View SolutionIf total assets of a business are ₹ 1,30,000 and net worth is ₹ 80,000, calculate the creditors.
[Hint: Net Worth = Assets - Liabilities] - 2View SolutionIf the Capital is ₹ 2,60,000 and Assets are ₹ 5,00,000, what is the amount of Liabilities?
- 3View SolutionWhat is meant by “Balancing an Account"?
- 4View SolutionThe capital of a business is ₹ 2,00,000 and outside liabilities are 1,50,000. Calculace the total assets of the business.
- 5View SolutionWhat is the rule of recording transactions in Personal Accounts?
- 6View SolutionWhat is Intangible Real Account? Give two examples of such type of accounts.
- 7View SolutionWhich transaction decreases one asset and increases another asset?
- 8View SolutionEnumerate four advantages of Ledger.
- 9View Solution
- Purchases Account.
- Cash.
- Capital.
- Salary.
- Interest received.
- Sales Return.
- Machinery.
- Drawings.
- 10View SolutionWhat is the rule of recording transactions in Nominal Accounts?