If Mr. Ajasin paid his creditors N5000 out of N20,000 owed, what would be the effect of this transaction on the accounting equation?
A decraese in the total asssets by N5000
An increase in the total liabilities and owners' equity by by N15,000
An increase in the total assets by N15,000
A decrease in owners' equity by N5000
Correct answer is A
No explanation has been provided for this answer.