Question
If a proprietor buys stock of Rs 10,000 on credit, which of the following items of accounting equation shall be affected?
Answer: Option D
:
D
Basic accounting equation is Assets= Capital + Liabilities, hence when stock of Rs 10,000 has been bought on credit, creditors & stock are increased which is liability and asset respectively, therefore option D is correct.
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:
D
Basic accounting equation is Assets= Capital + Liabilities, hence when stock of Rs 10,000 has been bought on credit, creditors & stock are increased which is liability and asset respectively, therefore option D is correct.
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