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    				| 1. | Q.8 Give necessary transactions for the following effect of increase and decrease in Assets, Capital and Liabilities. | 
| Answer» This increases the cash account (Asset) by $120,000, and increases the capital stock (EQUITY) account. Thus, the asset and equity SIDES of the transaction are EQUAL....Sample Accounting EQUATION Transactions.Transaction Type Assets Liabilities + EquitySell stock Cash increases Equity increases | |