Mr. Ajay has a business of selling of fans. He took 1 fan to his house for personal use. Which of the following is affected from these drawings in sole-proprietorship business?

Assets - Increase
Liabilities - No effect
Capital - Increase

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Assets - Decrease
Liabilities - Increase
Capital - No effect

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Assets - No effect
Liabilities - Increase
Capital - Increase

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Assets - Decrease
Liabilities - No effect
Capital - Decrease

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Solution

The correct option is D
Assets - Decrease
Liabilities - No effect
Capital - Decrease

At one hand, the assets of the business shall decrease along with an equal decrease in capital.

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Mr. Ajay has a business of selling of fans. He took 1 fan to his house for personal use. Which of the following is affected from these drawings in sole-proprietorship business?

The correct option is D Assets - Decrease Liabilities - No effect Capital - Decrease At one hand, the assets of the business shall decrease along with an equal decrease in capital.

The correct option is D
Assets - Decrease
Liabilities - No effect
Capital - Decrease

At one hand, the assets of the business shall decrease along with an equal decrease in capital.