Mr. John started a T-shirts business to be known as “John T-shirts”. Mr. John invested Rs 15,000 into his business. Which of the following shall be effected by this transaction in the accounting equation?

Assets & Capital

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

Assets, Liabilities & Capital

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

Assets & Liabilites

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

Liabilities & Capital

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

Open in App

Solution

The correct option is A
Assets & Capital

Equation element(s) impacted as a result of transaction : “Assets” & “Capital”. The investment is capital introduced by John in his business of John T-shirts which creates very initial accounting equation of the business. At this point, the cash is the only asset of business.

Suggest Corrections

Similar questions

Q. Mr. John is an American citizen who owns a big manufacturing company. Now, he wants to set up his business in India. Which of the following factor(s) should Mr. John consider for his new venture?

Q. Mr. John has acquired a floor of a building having 3 halls for Rs 1,500 per month. He uses two halls for his business and one for personal purpose. According to the business entity concept how much rent shall be recorded in the books?

Mr Ram purchased an asset for his business in cash. He is of the view that cash account shall be recorded on the left side, as cash is an asset while asset account should be recorded on the right side as there is an increase in the asset. Which of the following is incorrect in this transaction?

Q. Mr. John keeps his books according to single entry system. Following are the details of his business:

Particulars	01.04.2012 Amount (Rs.)	31.03.2013 Amount (Rs.)
Machinery	70,000	70,000
Furniture	10,000	20,000
Stock	36,000	42,000
Sundry debtors	72,200	88,400
Cash in hand	3,000	4,100
Cash at bank	42,000	52,300
Sundry creditors	54,500	60,400