If Mr. Ajasin paid his creditors N5000 out of N20 000 owed, what would be…

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Accounts - Principles of Accounts JAMB 2007

If Mr. Ajasin paid his creditors N5000 out of N20 000 owed, what would be the effect of this transaction on the accounting equation?

  • A decraese in the total asssets by N5000 checkmark
  • An incraese in the total liabilities and owners' equity by by N15 000
  • An increase in the total assets by N15 000
  • A decrease in owners' equuity by N5000

The correct answer is: A

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