Question

anyone pls tell what will be the journal entry for this : introduced additional capital by cheque rs 5000 class 11

Answer 1

Bank a/c. Dr. 5000
To capital a/c. 5000
(Being additional cheque introduced in business)

Hope it will help you .

Answer 2

Given "Additional capital introduced by cheque 5000rs"

This transaction affects two accounts..capital account and bank a/c... where capital account and bank accounts are Real a/c

The three golden rules of accounting are

Personal account - Debit the receiver, credit the giver.

Real account - Debit what comes in credit ,what goes out

Nominal account - Debit all expenses and losses, credit all incomes and Gains


So money is paid for capital..so money goes out of bank / asset decreases.. then as Per 2nd golden rule ..it should be debited....

Similarly capital is increasing..(liability is increasing) so it should be credited to that extent..



So the Journal Entry will be


Bank a/c Dr. 5000

To capital a/c. 5000

(being capital introduced by cheque)