alleryA business introduces ₹50,000 cash as capital. The effect on the accounting equation is
ACapital +50,000 only
BAssets unchanged
CCash +50,000 and Liabilities +50,000
DCash (asset) +50,000 and Capital +50,000
Answer & Solution
Correct answer: D. Cash (asset) +50,000 and Capital +50,000
Capital introduced increases the asset Cash by 50,000 and increases Capital by 50,000 — both sides of the equation rise equally.
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