What Is Effect of Increases An Asset And Increases Equity On Accounting Equation
A n increase in Assets and Owner’s Equity or Equity affects both sides of the Accou nting Equation . When an asset account increases with the increase in equity account, then we debit asset account and credit equity account according to the Rules of Debit And Credit . Example: Mr. A invested Rs. 50000 into business with cash. The journal entry to record is shown below: Cash a/c 50000 Capital a/c 50000 ...