Dubai Mountains paid monthly salaries of R8 500. What is the effect of this transaction on the accounts of the basic accounting equation?

Select one:

A.

Bank decreases assets by R8 500 and salaries increases liabilities by R8 500.

B.

Bank decreases assets by R8 500 and salaries decreases equity by R8 500.

C.

Trade receivables increases assets by R8 500 and trade payables increases liabilities by R8 500.

D.

Bank decreases equity by R8 500 and salaries decreases assets by R8 500.

E.

Bank increases assets by R8 500 and trade payables increases liabilities by R8 500.