The company purchases equipment with its cash available in the company`s bank account. What elements of the accounting equation shall get affected by this?

Total Assets only

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

TotalAssets & Capital

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

TotalLiabilities only

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

None of the above

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

Open in App

Solution

The correct option is D
None of the above

The accounting equation will remain unaffected on the whole. It is an example of conversion of one asset into another i.e. cash into assets.

Suggest Corrections

Similar questions

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

An entity gets a bank loan of Rs 1,00,000. What elements of the accounting equation shall get affected by this?

Company pays for the purchase of office equipments last month. Which account shall be debited in this case?

Join BYJU'S Learning Program