Framework for preparation and presentation of FS

Accountancy

Good evening Sir! I hve a doubt in this question... No 1 and 3 1.How will dividend increase equity and assests? 3.How does rent o/s increase equity?

Pushkala S

CA Final

★ 3K+

27-May-21 18:16

534

Answers (2)

1. Mr. A is earning dividend. So, bank (Asset) increases and profit (Equity) increases. 3. Rent is not increaing equity, it is decreasing it (as profit decreases) and liability is increased

Sahibdeep Singh

CA Inter

★ 14K+

27-May-21 20:15

Sahibdeep Singh

1. Mr. A is earning dividend. So, bank (Asset) increases and profit (Equity) increases. 3. Rent is not increaing equity, it is decreasing it (as profit decreases) and liability is increased

Thank you soo much Sir!!

Thread Starter

Pushkala S

CA Final

★ 3K+

27-May-21 20:49