Question

14. State the rules of debit and credit of capital​

Answer 1

Answer:

First: Debit what comes in, Credit what goes out. Second: Debit all expenses and losses, Credit all incomes and gains. Third: Debit the receiver, Credit the giver.

Answer 2

Answer:

Anything that an owner invests into the business is their capital and anything that they take out is known as drawings.In the rule of debit and credit ,an increase of capital is recording on the credit side and the decrease of capital is recording on debit side.