Bad debts written off is an example of ___________.

Increase in Asset & Owner's Liability

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Decrease in Asset & Owner's Liability

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Increase in Liability & Owner's Liability

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Decrease in Liability & Increase in Owner's Liability

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Increase in Liability & Decrease in Owner's Liability

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Solution

The correct option is A Decrease in Asset & Owner's Liability
Bad debts is an expense so, there will be decrease in capital and debtors is an asset which will be be reduced.

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(c) Cash = Assets
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(ii) Decrease in an asset and a liability.
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(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.
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(viii) Increase in liabilities, decrease in owner's capital.

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Bad debts written off is an example of ___________.

The correct option is A Decrease in Asset & Owner's LiabilityBad debts is an expense so, there will be decrease in capital and debtors is an asset which will be be reduced.

The correct option is A Decrease in Asset & Owner's Liability
Bad debts is an expense so, there will be decrease in capital and debtors is an asset which will be be reduced.