Africa Traders is in the business of installing concrete culvert pipes for clients based in Africa. On 28 February 2020, Africa Traders installed three concrete culvert pipes on credit for SA City for a total amount of R38 596. Africa Traders is not a registered VAT vendor.

What will the effect be of the above transaction in the accounting equation of Africa Traders?

Select one:

a.

Current assets will decrease by R38 596, Equity will also decrease by R38 596 and Liabilities will not be affected.

b.

Current assets will increase by R38 596, Equity will also increase by R38 596 and Liabilities will not be affected.

c.

Non-current assets will increase by R38 596, Equity will also increase by R38 596 and Liabilities will not be affected.

d.

Non-current assets will decrease by R38 596, Liabilities will also decrease by R38 596 and Equity will not be affected.