Atul purchased a car for Rs. $5, 00, 000$ , by making a down payment of Rs. $1, 00, 000$ and signing a Rs. $4, 00, 000$ bill payable due in $60$ days. As a result of this transaction ____________________.

total assets increased by Rs.

5, 00, 000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

total liabilities increased by Rs.

4,00,0004,00,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

total assets increased by Rs. 3,00,0004,00,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

total assets increased by Rs.

4,00,0004,00,000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D total assets increased by Rs. 4,00,000
On purchase of a Car, total assets of balance sheet will be increased by $R s . 5, 00, 000$ and on making of down payment of $R s .1, 00, 000$ total assets will decrease by $R s . 1, 00, 000$ . The result will be that total assets of Balance sheet will increase by $R s .4, 00, 000$ .
On other hand a liability of $R s .4, 00, 000$ has been made so the liability side of Balance Sheet will be increased by $R s .4, 00, 000$ .

Suggest Corrections

Similar questions

Q. Actual purchased a car for

R s .5, 00, 000

, by making a down payment of

R s .1, 00, 000

and singing a

R s .4, 00, 000

bill payable due in

60

days. As a result of this transaction ____________.

If total assets are Rs. 5,00,000; total liabilities are Rs. 1,00,000; amount realised on sale of assets is Rs. 4,20,000 and realisation expenses are Rs. 5,000, what will be the profit or loss on realisation?

Q. On death of X, assets and liabilities are revalued as under : Provision for doubtful debt raised by Rs. 1250,stock in trade increased by Rs. 1500 taken on record, Building increased by Rs.5100.find the profit and loss on revalutations.

Govind Pal Ltd., purchased running business of Hari Kishan for a purchase consideration of Rs. 20,00,000 and it took over their assets and liabilities as follows:

Land Rs. 3,00,000; Plant Rs. 5,00,000; Building Rs. 4,00,000; Cash Rs.50,000; Sundry Debtors Rs. 1,00,000; Sundry Creditors Rs. 70,000. It was decided between them to settle purchase consideration on the following basis : 20% in cash, 40% of the balance amount by accepting a bill of exchange and rest by issuing shares of Rs. 10 each at a premium of 20%.

Q. If during the accounting period the assets increased by Rs.

7, 000

, and the owner's equity decreased by Rs.

3, 000

, then the liabilities will be ______________.

Join BYJU'S Learning Program

Atul purchased a car for Rs. 5,00,000, by making a down payment of Rs. 1,00,000 and signing a Rs. 4,00,000 bill payable due in 60 days. As a result of this transaction ____________________.

Atul purchased a car for Rs. $5, 00, 000$ , by making a down payment of Rs. $1, 00, 000$ and signing a Rs. $4, 00, 000$ bill payable due in $60$ days. As a result of this transaction ____________________.