Question

Cash recieved from sale of personal asset deposied in firms account

Answer 1

Answer:

Sale of personal asset does not affect the firms account, so if the owner sell his personal asset and deposit the cash received by that means into the firms bank account, it will always be considered as Additional capital for the business.

The journal entry in that case will be,

Bank A/C Dr. ________

To Capital A/C _________

Answer 2

Cash A/C Dr.

To Capital A/C