Atul purchased a car for ₹5,00,000, by making a down payment of ₹1,00,000 and signing a ₹4,00,000 bill payable due in 60 days. As a result of this transaction —

CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · December 2013
Atul purchased a car for ₹5,00,000, by making a down payment of ₹1,00,000 and signing a ₹4,00,000 bill payable due in 60 days. As a result of this transaction —
(A) Total assets increased by ₹5,00,000
(B) Total liabilities increased by ₹4,00,000
(C) Total assets increased by ₹4,00,000
(D) Total assets increased by ₹4,00,000 with a corresponding increase in liabilities by ₹4,00,000.

Answer & Explanation:

Correct Answer: Option (D)

Correct answer: (D) Total assets increased by ₹4,00,000 with a corresponding increase in liabilities by ₹4,00,000..

Topics: Fundamentals of Accounting and Auditing

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