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How is owner’s equity affected when cash is received from sales?

User DobromirM
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1 Answer

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Answer:

Owner's Equity goes up

Step-by-step explanation:

In the case when there is a cash received from sales, so the journal entry would be

Cash Dr

To Sales revenue

(Being cash received is recorded)

Here cash is debited as it increased the assets, and the sales revenue is credited as it increased the revenue

since the revenue is increased so the equity is also increased as the expense and revenue is the part of an equity

Therefore the owner equity is increased