Question

introduction of additional capital through cash 900 and by furniture 100​

Answer 1

Explanation:

Assuming that furniture is bought for cash, from the point of view of business, the two accounts affected are-

Furniture a/c

and

Cash a/c.

Both the above accounts are Real Accounts.

Furniture a/c is a real account and will be debited in this transaction as the furniture is coming into the business under this transaction. The Golden rule of real accounts states 'Debit what comes in, Credit what goes out’.

Cash a/c is also a real account. Cash a/c will be credited as, under this transaction, cash is going out of the business. The Golden rule of real accounts states 'Debit what comes in, Credit what goes out’.

Hence the journal entry will be

Furniture a/c ……………….…Dr

To Cash a/c

(Being furniture purchased)

Note - In case the payment for furniture is done by cheque, bank a/c will be credited in place of cash a/c.

Answer 2

Answer:

Furniture A/c .... Dr. ₹100

Cash A/C ........... Dr. ₹900

To Capital A/C ₹1000