Chapter 1 : unit 2

Accountancy

Purchase of machinery for cash I thought increase in total assets because cash decreases and another asset machinery comes 8nto the business. But correct answer given as it retains assets unchanged. Plz clear this point sir

Anil Raj

CA Foundation

★ 580

07-Nov-22 21:49

670

Answers (2)

Best Answer

The answer is *total assets* remains unchanged ... because one asset increases and another asset decreases ... therefore,total asset does not change...only cash ( an asset) changes another form ( machine)

Yamuna S

CA Inter

★ 15K+

07-Nov-22 21:54

Yeah suppose 1000 worth of Machine. Payment in cash and getting machine into business of worth 1000. So assets are unchanged

Sugam SM

CA Final

★ 9K+

07-Nov-22 21:53