The building has been purchased by taking a bank loan. What elements of the accounting equation shall get effected by this?

Assets & Capital

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Assets, Liabilities & Capital

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Assets & Liabilities

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Liabilities & Capital

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Solution

The correct option is C
Assets & Liabilities

Equation element(s) impacted as a result of transaction : “Assets” & “Liability”. The building purchased is an asset of the business & at the same time, the loan shall be a liability to be paid to the bank by the entity.

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Similar questions

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Q. Fixed Assets = Rs. 5,50,000, Currecnts assets = Rs. 2,25,000, Current liabilities = Rs. 1,50,000, bank loan = Rs. 1,75,000. Capital =?

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$\begin{matrix} Transaction & Amount (Rs.) a. Started business with cash & 1,20,000 b. Rent received & 10,000 c. Invested in shares & 50,000 d. Received dividend & 5,000 e. Purchased goods on credit from Ragini & 35,000 f. Paid cash for household expenses & 7,000 g. Sold goods for cash (costing Rs. 10,000) & 14,000 h. Cash paid to Ragini & 35,000 i. Deposited into bank & 20,000 \end{matrix}$

Q. Current Assets can be calculated by adding Working Capital and Current Liabilities.

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The building has been purchased by taking a bank loan. What elements of the accounting equation shall get effected by this?

The correct option is C Assets & Liabilities Equation element(s) impacted as a result of transaction : “Assets” & “Liability”. The building purchased is an asset of the business & at the same time, the loan shall be a liability to be paid to the bank by the entity.

The correct option is C
Assets & Liabilities

Equation element(s) impacted as a result of transaction : “Assets” & “Liability”. The building purchased is an asset of the business & at the same time, the loan shall be a liability to be paid to the bank by the entity.