Bad Debts recovered is an example of __________.

Increase in Asset & Owner's Liability

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

Decrease in Asset & Owner's Liability

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

Increase in Liability & Owner's Liability

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

Decrease in Liability & Increase in Owner's Liability

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

Increase in Liability & Decrease in Owner's Liability

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

Open in App

Solution

The correct option is C Increase in Asset & Owner's Liability
Cash will increase and bad debts recovered is considered as an income. Therefore, there will be an increase in the asset and capital.

Suggest Corrections

Similar questions

Q. Which of the following, equations properly represents a derivation of the fundamental accounting equation?
(a) Assets + Liabilities = Owner Equity
(b) Asset = Owner Equity
(c) Cash = Assets
(d) Assets - Liabilities = Owner Equity

Q. A summary record of the changes in a particular asset, liability or owners equity is known as _________.

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. An obligation of the entity to owners is treated as a liability in the balance sheet according to __________.

Join BYJU'S Learning Program

Bad Debts recovered is an example of __________.

The correct option is C Increase in Asset & Owner's LiabilityCash will increase and bad debts recovered is considered as an income. Therefore, there will be an increase in the asset and capital.

The correct option is C Increase in Asset & Owner's Liability
Cash will increase and bad debts recovered is considered as an income. Therefore, there will be an increase in the asset and capital.