What is the effect: Sells goods worth 3,000 for 5,000 in cash
1. Assets increase by 5,000 as the business gains cash 2. assets will decrease by 3,000 since it is sold off. Hence there is a net increase of 2,000 in assets (5,000 - 3,000) 3.Makes a profit of 2,000 4.Capital increases by 2,000
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