Question

Journal entry for started business with cash Rs 2 00000 and furniture Rs 50000

Answer 1

Answer:

cash a/c Dr. 200000

furniture a/c Dr. 50000

To capital a/c 250000

(being business started with cash and capital)

Answer 2

Journal Entry

Furniture A/C DR  50,000

Cash A/C DR  2,00,000

                       To Capital 2,50,000

( Being business started with cash and furniture )

Note - Furniture is our asset and if it increases then it will be debited and cash is also our asset and it is coming in the business which means it is increasing so it will be debited , as cash and furniture is invested in the business , so it is capital and when capital increases it is credited.