Which of the following transactions will result in decrease in assets and decrease in liabilities?

Payment of a promissory note with cash

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Materials returned to supplier on account

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Redemption of debentures

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All of these

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Solution

The correct option is C All of these
1) Payment of promissory not with cash- liability and cash (assets) decreases.
2) Material return to supplier- Creditors (liability) and goods (assets) decreases
3) Redemption of debenture-Debenture (liability) and cash(assets) decreases.

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Similar questions

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.

A decrease in which of the following will lead to a decrease in the assets of a company?

Q. Which of the following transactions results in increase in shareholders' equity and decrease in liabilities?

Q. State with reason whether the following transactions will increase, decrease or not change the 'Return on Investment' Ratio:
(i) Purchase of machinery worth ₹10,00,000 by issue of equity shares.
(ii) Charging depreciation of ₹25,000 on machinery.
(iii) Redemption of debentures by cheque ₹2,00,000.
(iv) Conversion of 9% Debentures of ₹1,00,000 into equity shares.

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.

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Which of the following transactions will result in decrease in assets and decrease in liabilities?

The correct option is C All of these1) Payment of promissory not with cash- liability and cash (assets) decreases.2) Material return to supplier- Creditors (liability) and goods (assets) decreases3) Redemption of debenture-Debenture (liability) and cash(assets) decreases.

The correct option is C All of these
1) Payment of promissory not with cash- liability and cash (assets) decreases.
2) Material return to supplier- Creditors (liability) and goods (assets) decreases
3) Redemption of debenture-Debenture (liability) and cash(assets) decreases.