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Commerce · Q1098

Accounting

Graduate and Post Graduate · Commerce · question 1098

Q1098

An asset was purchased for Rs. 10,00,000 with the down payment of Rs. 2,00,000 and bills accepted for Rs. 8,00,000. What is the effect on the total asset and total liabilities in the balance sheet?

A.
Assets increased by Rs. 8,00,000 and liabilities decreased by Rs. 8,00,000
B.
Assets decreased by Rs. 8,00,000 and liabilities increased by Rs. 8,00,000
C.
Assets increased by Rs. 10,00,000 and liabilities increased by Rs. 8,00,000
D.
Assets increased by Rs. 8,00,000 and liabilities increased by Rs. 8,00,000
Answer

Answer: Option D

Solution

Answer: Option D
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