What is the effect on the Net Assets if cash is received from debtors of Rs. 50,000?
  • a)
    Increase 
  • b)
    Decrease 
  • c)
    No change 
  • d)
    None of these 
Correct answer is option 'C'. Can you explain this answer?

CA Foundation Question

3 Answers
Manik Sodhi answered Jun 12, 2018
There will be no change in the amount of net assets as debtors will be reduced and cash will increase

Nitin Mishra answered Jun 12, 2018
Description: Entry from receiving cash from debtors is:
Cash A/C Dr. 50,000
To Debtors A/C 50,000
Since, both the above items are current asset elements, there will be no change in current asset position due to this transaction.

Soundharyha Velmurugan answered 3 weeks ago
Since cash is received aganist debtors there will be no change in the net asset because the cash increases and debtor decreases the same amount will be added and the same will be subtracted

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