Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

A sole trader pays a trade payable in full using her own funds. No entry has been made for this transaction. What effect will this have when it is recorded?

  • Aasset decreased and liability decreased
  • Basset increased and liability decreased
  • Cliability decreased and capital increased
  • Dliability increased and capital decreased

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