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
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.