When amount is received from customers, what will be the imapct in accounting equation?

Assets - Increase
Liabilities - No effect
Capital - Decrease

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Assets - Decrease
Liabilities - Increase
Capital - No effect

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Assets - No effect
Liabilities - Decrease
Capital - Increase

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No impact

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Solution

The correct option is D
No impact

When amount is received from customers, cash increases and amount of debtors decreases. As both are assets there will be no impact in accounting equation.

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Similar questions

Give an example for each of the following types of transaction.
(i) Increase in one asset, decrease in another asset.
(ii) Increase in asset, increase in liability.
(iii) Increase in asset, increase in owner's capital.
(iv) Decrease in asset, decrease in liability.
(v) Decrease in asset, decrease in owner's capital.
(vi) Decrease in liabilities, increase in owner's capital.
(vii) Increase in one liability, decrease in another liability.
(viii) Increase in liabilities, decrease in owner's capital.

Q. Give one example of each of the following transactions:
(i) Increase in an asset and a liability.
(ii) Decrease in an asset and a liability.
(iii) Increase in assets and capital.
(iv) Decrease in assets and capital.

If the total liabilities of a business decrease by Rs 5000 what will be the effect on total assets? (assuming the amount of capital remain same).

Which statement shows the increase and decrease in various assets, liabilities and capital in two or more balance sheets of the same business enterprise on different dates?

Which among the following statement(s) is/ are correct?

Codes :

1 only
3 only
1 and 2 only
2 and 3 only

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When amount is received from customers, what will be the imapct in accounting equation?

The correct option is D No impact When amount is received from customers, cash increases and amount of debtors decreases. As both are assets there will be no impact in accounting equation.

The correct option is D
No impact

When amount is received from customers, cash increases and amount of debtors decreases. As both are assets there will be no impact in accounting equation.