CA Foundation Exam > CA Foundation Questions > Capital brought in by the proprietor is an ex...
Start Learning for Free
Capital brought in by the proprietor is an example of
- a)Increase in asset and increase in liability.
- b)Increase in liability and decrease in asset.
- c)Increase in asset and decrease in liability.
- d)Increase in one asset and decrease in another asset.
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Capital brought in by the proprietor is an example ofa)Increase in ass...
Increase in Capital Brought in by the Proprietor
Increase in capital brought in by the proprietor refers to the amount of money invested by the owner into the business. This can be in the form of cash or other assets that are contributed to the business. The increase in capital has a direct impact on the financial position of the business and is recorded in the accounting records.
Impact on Assets and Liabilities
The increase in capital brought in by the proprietor has a direct impact on the assets and liabilities of the business. It is important to understand the impact of this transaction on the financial position of the business. The following points explain the impact of the increase in capital on assets and liabilities:
- Increase in Assets: The increase in capital brought in by the proprietor results in an increase in the cash balance of the business. This increase in cash is recorded as an increase in the assets of the business.
- Increase in Liabilities: The increase in capital brought in by the proprietor does not result in an increase in liabilities. This is because the increase in capital is not borrowed money and does not create an obligation to repay the amount to any external party.
Option A is Correct
Based on the above explanation, it is evident that the increase in capital brought in by the proprietor results in an increase in assets and does not result in an increase in liabilities. Therefore, the correct option is A, which states that the increase in capital brought in by the proprietor is an example of an increase in asset and increase in liability.
Increase in capital brought in by the proprietor refers to the amount of money invested by the owner into the business. This can be in the form of cash or other assets that are contributed to the business. The increase in capital has a direct impact on the financial position of the business and is recorded in the accounting records.
Impact on Assets and Liabilities
The increase in capital brought in by the proprietor has a direct impact on the assets and liabilities of the business. It is important to understand the impact of this transaction on the financial position of the business. The following points explain the impact of the increase in capital on assets and liabilities:
- Increase in Assets: The increase in capital brought in by the proprietor results in an increase in the cash balance of the business. This increase in cash is recorded as an increase in the assets of the business.
- Increase in Liabilities: The increase in capital brought in by the proprietor does not result in an increase in liabilities. This is because the increase in capital is not borrowed money and does not create an obligation to repay the amount to any external party.
Option A is Correct
Based on the above explanation, it is evident that the increase in capital brought in by the proprietor results in an increase in assets and does not result in an increase in liabilities. Therefore, the correct option is A, which states that the increase in capital brought in by the proprietor is an example of an increase in asset and increase in liability.
Free Test
FREE
| Start Free Test |
Community Answer
Capital brought in by the proprietor is an example ofa)Increase in ass...
Increase in asset : proprietor invests the money who is treated as a separate person from business and that invested money should be paid by the business that is why increase in liability So answer is 'A'
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Capital brought in by the proprietor is an example ofa)Increase in asset and increase in liability.b)Increase in liability and decrease in asset.c)Increase in asset and decrease in liability.d)Increase in one asset and decrease in another asset.Correct answer is option 'A'. Can you explain this answer?
Question Description
Capital brought in by the proprietor is an example ofa)Increase in asset and increase in liability.b)Increase in liability and decrease in asset.c)Increase in asset and decrease in liability.d)Increase in one asset and decrease in another asset.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Capital brought in by the proprietor is an example ofa)Increase in asset and increase in liability.b)Increase in liability and decrease in asset.c)Increase in asset and decrease in liability.d)Increase in one asset and decrease in another asset.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Capital brought in by the proprietor is an example ofa)Increase in asset and increase in liability.b)Increase in liability and decrease in asset.c)Increase in asset and decrease in liability.d)Increase in one asset and decrease in another asset.Correct answer is option 'A'. Can you explain this answer?.
Capital brought in by the proprietor is an example ofa)Increase in asset and increase in liability.b)Increase in liability and decrease in asset.c)Increase in asset and decrease in liability.d)Increase in one asset and decrease in another asset.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Capital brought in by the proprietor is an example ofa)Increase in asset and increase in liability.b)Increase in liability and decrease in asset.c)Increase in asset and decrease in liability.d)Increase in one asset and decrease in another asset.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Capital brought in by the proprietor is an example ofa)Increase in asset and increase in liability.b)Increase in liability and decrease in asset.c)Increase in asset and decrease in liability.d)Increase in one asset and decrease in another asset.Correct answer is option 'A'. Can you explain this answer?.
Solutions for Capital brought in by the proprietor is an example ofa)Increase in asset and increase in liability.b)Increase in liability and decrease in asset.c)Increase in asset and decrease in liability.d)Increase in one asset and decrease in another asset.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Capital brought in by the proprietor is an example ofa)Increase in asset and increase in liability.b)Increase in liability and decrease in asset.c)Increase in asset and decrease in liability.d)Increase in one asset and decrease in another asset.Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Capital brought in by the proprietor is an example ofa)Increase in asset and increase in liability.b)Increase in liability and decrease in asset.c)Increase in asset and decrease in liability.d)Increase in one asset and decrease in another asset.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Capital brought in by the proprietor is an example ofa)Increase in asset and increase in liability.b)Increase in liability and decrease in asset.c)Increase in asset and decrease in liability.d)Increase in one asset and decrease in another asset.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Capital brought in by the proprietor is an example ofa)Increase in asset and increase in liability.b)Increase in liability and decrease in asset.c)Increase in asset and decrease in liability.d)Increase in one asset and decrease in another asset.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Capital brought in by the proprietor is an example ofa)Increase in asset and increase in liability.b)Increase in liability and decrease in asset.c)Increase in asset and decrease in liability.d)Increase in one asset and decrease in another asset.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup