If Mr. Ajasin paid his creditors N5000 out of N20 000 owed, what would be
FINANCIAL
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. A decraese in the total asssets by N5000
- B. An incraese in the total liabilities and owners' equity by by N15 000
- C. An increase in the total assets by N15 000
- D. A decrease in owners' equuity by N5000
Correct Answer: A. A decraese in the total asssets by N5000
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