WAEC Accounting 2020 Objective — Question 19

Question 19 of 50 from the West African Examinations Council (WAEC) Accounting 2020 Objective paper, with the correct answer and a full explanation.

Eze introduces his private car into his business. The aspect of accounting equation of the business that would be affected are

A. Assets and CapitalCorrect
B. Capital and Profit
C. Liabilities and Assets
D. Capital and Liabilities

Explanation

Since a business is different from the owner according to the going concern concept, whatever comes to the business from the owner will be treated as capital, so the entry will be Dr Asset account, Cr Capital account, affecting Assets and Capital.

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