Atul purchased a car for Rs. 5,00,000, by making down payment of Rs. 1,00,000 and signing a Rs. 4,00,000 bill payable due in 60 days. As a result of this transaction
A. Total assets increase by Rs. 5,00,000
B. Total liabilities increase by Rs.4,00,000
C. Total assets increase by Rs. 4,00,000
D. Total assets increase by Rs. 4,00,000 with a corresponding increase in liabilities by Rs. 4,00,000
Answer:D
Atul purchased a car for Rs. 5,00,000, by making down payment of Rs. 1,00,000 and signing a Rs. 4,00,000 bill payable due in 60 days. As a result of this transaction
A. Total assets increase by Rs. 5,00,000 B. Total liabilities increase by Rs.4,00,000 C. Total assets increase by Rs. 4,00,000 D. Total assets increase by Rs. 4,00,000 with a corresponding increase in liabilities by Rs. 4,00,000