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Mr. X purchased a computer for Rs. 60,000 by making a down payment of Rs. 10,000 and balance Rs. 50,000 signing the agreement of bills payable due in 50 days. As a result of these transactions.
  • a)
    Total assets increased by Rs. 50,000 with the corresponding increase in liability Rs. 50,000
  • b)
    Total assets increased by Rs. 50,000
  • c)
    Total assets increased by Rs. 60,000 with the corresponding increase in liability by Rs. 50,000
  • d)
    Total assets increased by Rs. 60,000 with the corresponding increase in liability by Rs. 60,000
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Mr. X purchased a computer for Rs. 60,000 by making a down payment of ...
Explanation:

Total assets refer to the total value of all assets owned by a company. In this case, Mr. X purchased a computer for Rs. 60,000. Let's analyze the transaction to understand its impact on total assets and liabilities.

1. Down Payment: Mr. X made a down payment of Rs. 10,000, which means he paid Rs. 10,000 from his pocket. This transaction does not impact the total assets and liabilities.

2. Signing the Agreement: Mr. X signed an agreement to pay the balance Rs. 50,000 in 50 days. This transaction increases the liability of Mr. X by Rs. 50,000. The computer is now an asset of Mr. X, which increases his total assets by Rs. 60,000.

Therefore, the correct option is 'A,' which states that total assets increased by Rs. 50,000 with the corresponding increase in liability Rs. 50,000.

To summarize:

- Down Payment: No impact on total assets and liabilities.
- Signing the Agreement: Increases the liability by Rs. 50,000.
- Computer Purchase: Increases the assets by Rs. 60,000.

Hence, the net impact is an increase in total assets by Rs. 60,000 and an increase in total liabilities by Rs. 50,000. However, option 'A' is correct because it states that there is a corresponding increase in assets and liabilities by Rs. 50,000.
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Community Answer
Mr. X purchased a computer for Rs. 60,000 by making a down payment of ...
Company buys Assets of 60000 and it has made payment of 10,000 only so it means that the total assets are of 50000 now in a company and also we have not paid liability of 50000 liability will also increase by 50 thousand
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Mr. X purchased a computer for Rs. 60,000 by making a down payment of Rs. 10,000 and balance Rs. 50,000 signing the agreement of bills payable due in 50 days. As a result of these transactions.a)Total assets increased by Rs. 50,000 with the corresponding increase in liability Rs. 50,000b)Total assets increased by Rs. 50,000c)Total assets increased by Rs. 60,000 with the corresponding increase in liability by Rs. 50,000d)Total assets increased by Rs. 60,000 with the corresponding increase in liability by Rs. 60,000Correct answer is option 'A'. Can you explain this answer?
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Mr. X purchased a computer for Rs. 60,000 by making a down payment of Rs. 10,000 and balance Rs. 50,000 signing the agreement of bills payable due in 50 days. As a result of these transactions.a)Total assets increased by Rs. 50,000 with the corresponding increase in liability Rs. 50,000b)Total assets increased by Rs. 50,000c)Total assets increased by Rs. 60,000 with the corresponding increase in liability by Rs. 50,000d)Total assets increased by Rs. 60,000 with the corresponding increase in liability by Rs. 60,000Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Mr. X purchased a computer for Rs. 60,000 by making a down payment of Rs. 10,000 and balance Rs. 50,000 signing the agreement of bills payable due in 50 days. As a result of these transactions.a)Total assets increased by Rs. 50,000 with the corresponding increase in liability Rs. 50,000b)Total assets increased by Rs. 50,000c)Total assets increased by Rs. 60,000 with the corresponding increase in liability by Rs. 50,000d)Total assets increased by Rs. 60,000 with the corresponding increase in liability by Rs. 60,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr. X purchased a computer for Rs. 60,000 by making a down payment of Rs. 10,000 and balance Rs. 50,000 signing the agreement of bills payable due in 50 days. As a result of these transactions.a)Total assets increased by Rs. 50,000 with the corresponding increase in liability Rs. 50,000b)Total assets increased by Rs. 50,000c)Total assets increased by Rs. 60,000 with the corresponding increase in liability by Rs. 50,000d)Total assets increased by Rs. 60,000 with the corresponding increase in liability by Rs. 60,000Correct answer is option 'A'. Can you explain this answer?.
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