When cash is deposited in bank, what will be the impact in accounting equation?

Assets & Capital increases

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Assets & Capital decreases

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Assets & Liability increases

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No impact

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Solution

The correct option is D
No impact

There will be no impact as cash decreases and bank balance increases which are assets.

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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.

Q. The accounting equation i.e. Assets = Capital + liabilities is based on _________________.

Q. The fundamental accounting equation Assets = Capital + Liabilities is the formal expression of __________.

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 cash is deposited in bank, what will be the impact in accounting equation?

The correct option is D No impact There will be no impact as cash decreases and bank balance increases which are assets.

The correct option is D
No impact

There will be no impact as cash decreases and bank balance increases which are assets.