An example of a Decrease in liabilities and increase in owner's capital is _________.

Accrued Interest

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Outstanding Rent

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Bills Payable Accepted

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Conversion of Partner's loan into capital

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Solution

The correct option is D Conversion of Partner's loan into capital
Conversion of Partner's loan into capital

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Similar questions

Q. Give one example of each of the following transactions:
(i) Increase in an asset and a liability.
(ii) Decrease in an asset and a liability.
(iii) Increase in assets and capital.
(iv) Decrease in assets and capital.

Give an example for each of the following types of transaction.
(i) Increase in one asset, decrease in another asset.
(ii) Increase in asset, increase in liability.
(iii) Increase in asset, increase in owner's capital.
(iv) Decrease in asset, decrease in liability.
(v) Decrease in asset, decrease in owner's capital.
(vi) Decrease in liabilities, increase in owner's capital.
(vii) Increase in one liability, decrease in another liability.
(viii) Increase in liabilities, decrease in owner's capital.

Q. If a loan from a partner appears on the liabilities side of the Balance Sheet of the firm and the Capital Account of such partner shows a debit balance, how is loan dealt with?

Q. Classify the following into Assets, Liabilities, Capital, Revenue, and Expenses:

(i) Plant and Machinery;	(ii) Bank Loan;	(iii) Sales;	(iv) Rent;
(v) Discount Received;	(vi) Carriage Inwards;	(vii) Carriage outwards;	(viii) Purchases;
(ix) Bills Payable;	(x) Wages;	(xi) Advance Income;	(xii) Accrued Income;
(xiii) Goodwill;	(xiv) Furniture and Fixtures;	(xv) Outstanding Expenses;	(xvi) Capital.

If a liability is assumed by a partner, such Partner’s Capital Account is __________

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An example of a Decrease in liabilities and increase in owner's capital is _________.

The correct option is D Conversion of Partner's loan into capitalConversion of Partner's loan into capital

The correct option is D Conversion of Partner's loan into capital
Conversion of Partner's loan into capital