Q. An asset was purchased for Rs.1000000 with the down payment of Rs.200000 and bills accepted for Rs.800000/-What would be the effect on the total asset and total liabilities in the balance sheet?
A. Assets increased by Rs.800000 and liabilities increased by Rs.800000
B. Assets increased by Rs.1000000 and liabilities increased by Rs.800000
C. Assets decreased by Rs.800000 and liabilities increased by Rs.800000
D. Assets increased by Rs.800000 and liabilities decreased by Rs.800000
Answer: Assets increased by Rs.800000 and liabilities increased by Rs.800000
