Question

introduced 1000 cash and commenced bissnus​

Answer 1

Answer:

Answer is :

Cash A/C dr

To Capital A/C

How,

Step 1 : Read the QUESTION and Interpret the transaction:

According to this question, The owner of business invest cash in his Business,

Step 2 : find “A/c's" from above transaction,

* From the above transaction there are two accounts,

First is “CASH A/c”

Second is “CAPITAL A/c” ( we know that Capital A/c represent the Owner of business

Step 3 :classify the A/c in “Personal, Real or Nominal”,

From step 2,

CASH is Real A/c and

CAPITAL is Personal A/c

Step 4: Apply “Traditional Approach”

(1) Real A/c rule :-

Debit whats comes in

Credit whats goes out

From Step 3 CASH is real A/c and from Step 1 CASH comes in, Therefore , “CASH A/c will be Debit.

(2) Personal A/c rule :-

Debit the receiver

Credit the gaver

From Step 3 CAPITAL is Personal A/c and From Step 1 Capital(Owner) is Gaver, Therefore, “Capital A/c will be credit.

Therefor, The journal entry of the above question is :

CASH A/c Dr. XXX

TO CAPITAL A/c. XXX