Fresh capital introduction will increase

A. Assets and Liabilities

B. Assets and Equity

C. Liabilities and equity and bank balance

D. Capital and Liabilities

Answer: Option B

Solution(By Examveda Team)

Fresh capital introduction will increase Assets and Equity.
Capital will increase the Equity.
Cash at Bank will increase the Asset.

This Question Belongs to Commerce >> Accounting

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Comments ( 4 )

  1. Umesh Pokhariya
    Umesh Pokhariya :
    3 years ago

    Option wrong

  2. Bala Gopi
    Bala Gopi :
    4 years ago

    Introduction of capital leads to increase in equity capital and assets right but it even increase liability for business. Suppose I started business with 10L other liability are 10L total=20L and total assets =20L now introduction of capital 5L leads increase in equity by 5L (15L) &assets by 5L (25L) where now liability will also increase 15L+10L =25L right

  3. Raj Tanwar
    Raj Tanwar :
    5 years ago

    sir explain this question why not capital increased

  4. San Tosh
    San Tosh :
    6 years ago


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