A trader bought new fixtures. He paid half of the purchase price in cash and arranged to settle the remaining amount later. What effect does this purchase have on the accounting equation?
- Aassets decrease; owner’s equity decrease; liabilities no effect
- Bassets decrease; owner’s equity no effect; liabilities increase
- Cassets increase; owner’s equity decrease; liabilities increase
- Dassets increase; owner’s equity no effect; liabilities increase