If 3rd July transaction is paid off then, what will be the total value of assets? If owner invested additional K500 then which two elements or side will be affected?

Here are the solutions for questions 33 and 34: Question 33: If the 3rd July transaction (paying off ABC Furniture) is completed, the total value of assets will change. Step 1: Identify the liability to be paid off. The liability to ABC Furniture is K1 700. Step 2: Calculate the new Cash at Bank balance. Paying off the liability means cash will decrease. Original Cash at Bank = K3 500 Payment = K1 700 New Cash at Bank = K3 500 - K1 700 = K1 800 Step 3: Calculate the new total value of assets. Assets include Cash at Bank and Inventories. New Total Assets = New Cash at Bank + Inventories New Total Assets = K1 800 + K1 500 = K3 300 The total value of assets will be K3 300. Question 34: If the owner invested an additional K500, the two elements or sides affected would be: • Assets (specifically Cash at Bank, which increases) • Capital (which is part of Proprietorship/Equity, and also increases) Send me the next one 📸