Discover the answers you need at Westonci.ca, where experts provide clear and concise information on various topics. Discover comprehensive answers to your questions from knowledgeable professionals on our user-friendly platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
Sagot :
Explanation:
Basis accounting principle says that asset account are debited when they are increasing and liability are credited when they are increasing and vice versa.
Therefore, in this transaction
Assets(cash in hand) increase by $50000, liabilities(loan) increase by $50000 and there is no effect on equity.
The accounting equation basically represents the balance sheet that shows the relationship between the assets of the firm, liabilities of the firm, and the equity of the firm. It is the basic pave for the book-keeping system and also equals the debits with the credits.
The basis accounting principle says that asset account are debited when they are increasing and liability is credited when they are increasing and vice versa.
Therefore, in this transaction
Assets(cash in hand) increase by $50000, liabilities(loan) increase by $50000, and there is no effect on equity.
To know more about the effect of the accounting equation, refer to the link below:
https://brainly.com/question/13575039
We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.
