The owner contributes his/her personal truck to the business. On one hand, the assets of the business shall increase along with an equal increase in ___

Capital

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

Liabilities & Capital

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

Liabilities

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

None of the above

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

Open in App

Solution

The correct option is A
Capital

The owner contributes his/her personal truck to the business. On one hand, the assets of the business shall increase along with an equal increase in capital as this is an investment by the owner in the business.

Suggest Corrections

Similar questions

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. Abdul is a single owner of a shoe manufacturing business. His business was suffering from continuous losses. To revive his business and to expand, he took a loan of 20 lakhs from 'Progressive Finance Co.' In spite of starting new range of products and great effort by Abdul, business continued to suffer losses. This resulted in the declining assets and mounting debts. Abdul started defaulting on his repayment schedule. Finance company served him final notice to repay the loan and settle the account. He proposed the finance company to take over the business assets and clear their dues. Finance company took over the assets of the business in part settlement of their dues as the assets were not sufficient to settle the debts and they claimed the remaining amount from Abdul from his personal assets. Abdul refused to do so on the ground that loan was taken for the business and not by him for personal use.
1. Name the form of business organization followed by Abdul.
2. Is the finance company justified in asking for remaining amount from Abdul's personal assets? justify your answer by giving suitable feature of the business organization.

Q. Expenditure on fixed assets which increases the earning capacity of the business is known as _____________ .

Q. In case of ___ of the business, Karta’s personal assets and his share will be liable.

Q. If an owner introduces money in the business, it assets and capital.

Join BYJU'S Learning Program

The owner contributes his/her personal truck to the business. On one hand, the assets of the business shall increase along with an equal increase in ___

The correct option is A Capital The owner contributes his/her personal truck to the business. On one hand, the assets of the business shall increase along with an equal increase in capital as this is an investment by the owner in the business.

The correct option is A
Capital

The owner contributes his/her personal truck to the business. On one hand, the assets of the business shall increase along with an equal increase in capital as this is an investment by the owner in the business.