If a proprietor buys stock of Rs 10,000 on credit, which of the following items of accounting equation shall be affected?

Assets only

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Liabilities only

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Liabilities & Capital both

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Assets & Liabilities both

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Solution

The correct option is D
Assets & Liabilities both

Basic accounting equation is Assets= Capital + Liabilities, hence when stock of Rs 10,000 has been bought on credit, creditors & stock are increased which is liability and asset respectively, therefore option D is correct.

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If a proprietor buys stock of Rs 10,000 on credit, which of the following items of accounting equation shall be affected?

The correct option is D Assets & Liabilities both Basic accounting equation is Assets= Capital + Liabilities, hence when stock of Rs 10,000 has been bought on credit, creditors & stock are increased which is liability and asset respectively, therefore option D is correct.

The correct option is D
Assets & Liabilities both

Basic accounting equation is Assets= Capital + Liabilities, hence when stock of Rs 10,000 has been bought on credit, creditors & stock are increased which is liability and asset respectively, therefore option D is correct.