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The owner contributes his/her personal car to the business. The Owner`s Equity will?

1. Increase

2. Decrease

3. No Effect

Accounting Financial Reporting Financial Accounting
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Question added by Imdad Hussain Rajput , Assistant Sales Manager , Forego
Date Posted: 2015/08/02
Upvote (0) Views (7) Followers (2) Answers (2) Report Question
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Deleted user
by Deleted user

1. Increase

Since with the double entry principle there will be increase in asset and increase in owner's equity

Mehboob Ali Laghari
by Mehboob Ali Laghari , Social Mobilization Team Incharge , TRDP-European Union

it really depends on the one of the three categories of investment/contribution.. However, The owner`s equity should increase along with fixed assets...

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