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Fresh capital introduction will increase

This question belongs to Commerce Accounting
Accounting
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Fresh capital introduction will increase

Answer & Solution
Correct Answer: Option B
Fresh capital introduction will increase Assets and Equity.
Capital will increase the Equity.
Cash at Bank will increase the Asset.
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6 Comments
Shivalanki Naresh
Shivalanki Naresh 1 year ago
Introduction of a Car to the business is also a capital, that doesn't increase the bank balance so option B is better option
Shivalanki Naresh
Shivalanki Naresh 1 year ago
Option C more suitable than Option B
Umesh Pokhariya
Umesh Pokhariya 5 years ago
Option wrong
Bala Gopi
Bala Gopi 7 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
Raj Tanwar
Raj Tanwar 8 years ago
sir explain this question why not capital increased
San Tosh
San Tosh 9 years ago
how?
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