A trader repaid a long-term loan of $10,000. She used all the money in the business bank

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A trader repaid a long-term loan of $10,000. She used all the money in the business bank account, $7,000, and paid the balance from her personal bank account.
How did this affect the statement of financial position?

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Cambridge IGCSE And O Level Accounting Coursebook

ISBN: 9781316502778

2nd Edition

Authors: Catherine Coucom

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Question Posted: Sep 15, 2021 05:45 AM

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A trader repaid a long-term loan of $10,000. She used all the money in the business bank

Question:

Assets Liabilities Capital A no effect B decrease $7000 C decrease $10000 D decrease $10000 decrease $3000 increase $3000 decrease $10000 increase $3000 decrease $7000 decrease $3000 decrease $10000 no effect

Step by Step Answer:

ANSWER Assets decrease 7000 Liabilities decrease 10000 Capital no effect Explan...View the full answer

Cambridge IGCSE And O Level Accounting Coursebook

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