Question

A commenced business with50000

Answer 1

golden principles of accounting .

1.personal account rule

dr- the receiver.

cr- the giver.

2.real account rule

dr- what comes in.

cr- what goes out.

3.nominal account rule.

dr- all expenses and losses.

cr- all incomes and gains.

the journal entry will be .

cash a/c dr 50000

to capital a/c 50000.

( being business commenced with cash. )