Advertisement expense decreases Equity
A E Y L
1730 1730 0
N A
, Step 1: Identify the Accounts Affected
• Bank (Asset): Decreases by R1 730 because cash was paid.
• Advertising Expense (Equity via Profit/Loss): Increases by R1 730, which reduces equity (since expenses decrease profit).
Final Answer:
• Bank (Asset) decreases by R1 730 (Credited).
• Advertising Expense (Equity) increases by R1 730 (Debited).
• No effect on Liabilities.
A E Y L
1730 1730 0
N A
, Step 1: Identify the Accounts Affected
• Bank (Asset): Decreases by R1 730 because cash was paid.
• Advertising Expense (Equity via Profit/Loss): Increases by R1 730, which reduces equity (since expenses decrease profit).
Final Answer:
• Bank (Asset) decreases by R1 730 (Credited).
• Advertising Expense (Equity) increases by R1 730 (Debited).
• No effect on Liabilities.
