Show the effect of the following transactions on assets, liabilities and capital: a) Capital brought in the business b) Loan taken c) Purchased fixed asset for cash d) Purchased goods on cash e) Sold goods for cash at profit f) Sold goods on credit at profit g) Purchased goods on credit h) Return of goods on credit at profit i) Sold goods for cash at profit j) Return of goods by a customer k) Return of goods of supplier l) Payment received from a customer to whom cash discount was allowed m) Payment made to a supplier who allowed cash discount n) Payment of expenses like salary o) Expenses due but not paid p) Receipt of an income q) Income due but not received r) Income received in advance or unearned income s) Depreciation on fixed assets t) Interest on capital u) Interest on drawings v) Cash or goods withdrawn for personal use w) Repayment of loan x) Security deposit from tenants y) Bad debts z) Goods destroyed by fire​

Dear Student,

(a) Increase in Capital & Increase in Assets (Cash)
(b) Increase in Liability & Increase in Assets (Cash)
(c) Increase in Asset (Fixed Asset) & Decrease in Asset (Cash)
(d) Increase in Asset (Stock) & Decrease in Asset (Cash)
(e) Increase in Asset (Cash), Decrease in Asset (Stock) & Increase in Capital (Profit)
(f)  Increase in Asset (Debtors), Decrease in Asset (Stock) & Increase in Capital (Profit)
(g) Increase in Asset (Stock) & Increase in Liability (Creditors)
(h) Increase in Asset (Stock), Decrease in Assets (Debtors) & Decrease in Capital (Profit)- assuming sales return
(i) Increase in Asset (Cash), Decrease in Asset (Stock) & Increase in Capital (Profit)
(j) Increase in Asset (Stock) & Decrease in Asset (Cash)- if the goods were sold on cash basis
    Increase in Asset (Stock) & Decrease in Asset (Debtors)- if the goods were sold on credit
(k) Increase in Asset (Cash) & Decrease in Asset (Stock)- if the goods were purchased on cash basis 
     Decrease in Liability (Creditors) & Decrease in Asset (Stock)- if the goods were purchased on credit
(l) Increase in Asset (Cash), Decrease in Asset (Debtors) & Decrease in Capital (Discount Allowed)
(m) Decrease in Asset (Cash), Decrease in Liability (Creditors) & Increase in Capital (Discount Received)
(n) Decrease in Asset (Cash) & Decrease in Capital
(o) Increase in Liability (Expense Outstanding) & Decrease in Capital
(p) Increase in Asset (Cash) & & Increase in Capital
(q) Increase in Asset (Accrued Income) & Increase in Capital
(r) Increase in Liability (Unearned Income) & Increase in Asset (Cash)
(s) Decrease in Asset (Fixed Assets) & Decrease in Capital
(t) Decrease in Capital (Expense for business) & Increase in Capital (Owner's Income)
(u)  Decrease in Capital (Owner's Expense) & Increase in Capital (Business Income)
(v) Decrease in Asset (Cash/Stock of Goods) & Decrease in Capital
(w) Decrease in Asset (Cash) & Decrease in Liability (Loan)
(x) Increase in Asset (Cash) & Increase in Liability (Security Deposit)
(y) Decrease in Asset (Debtors) & Decrease in Capital
(z) Decrease in Asset (Stock) & Decrease in Capital
 

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