Question

Business started with cash 200000 with goods 70000

Answer 1

Explanation:

cash a/c Dr. 200000

purchase a/c Dr. 70000

To capital a/c. 270000

Answer 2

Answer:

Journal entry

Cash A/c        Dr      2,00,000

Purchases A/ Dr          70,000

       To capital A/c                        2,70,000

(being business started with cash and goods)

Explanation:

Cash - real account , where cash comes into the business therefore its debited

Purchases - nominal account , where its expense to the company therefore its debited

Capital- personal account , owner is the giver of goods and cash therefore its credited