BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -(i) Increase in Asset, Increase in Owner’s Equity: Introduction of capital by the proprietor increases asset (cash or bank) and also liability (capital). (ii) Decrease in Owner’s Capital, Decrease in Asset: Drawings by the proprietor decreases liability (capital) and also asset (cash/bank) etc.

Detailed explanation-2: -The purchase of an asset for cash will lead to an increase in non-current assets such as a plant, property, or equipment. On the other hand, the cash account, which is a current asset, will decrease by the same amount. Thus, we can conclude that the total assets will remain unchanged.

Detailed explanation-3: -In asset accounts, a debit increases the balance and a credit decreases the balance. For liability accounts, debits decrease, and credits increase the balance.

Detailed explanation-4: -Assets. Asset increases are recorded with a debit. First step to memorize: “Debit asset up, credit asset down.” Asset accounts, especially cash, are constantly moving up and down with debits and credits. The ending balance for an asset account will be a debit.

Detailed explanation-5: -When cash is received from a customer on account, the corresponding amount is reduced from the accounts receivable account and added to the cash account. Since both of these accounts are current assets, there will be no change in the current assets and total assets.