Question

1. Raghu started business with cash Rs.80,000, goods Rs.40,000 and furniture Rs.20,000.

Answer 1

Raghu start the business with three things i. e cash, goods, furniture etc.

Something that come in the business is debited.

All these things are done by the properitor. Hence all these things are goes to Capital account.

JOURNAL ENTRY WILL BE!!!!

Cash a/c. Dr. 80,000

Purchase a/c. Dr. 40,000

Furniture a/c. Dr 20,000


........To Capital a/c............ 1,40,000

( being started business with cash, goods and furniture.)

Answer 2

Cash a/c Dr.  80000 Purchase a/c Dr.  40000 Furniture a/c Dr. 20000                  To capital a/c      140000