Question

Journal entry:-
Introduced additional capital - Rs.50,000

Answer 1

Answer:

Date - Particulars - L/F. - Dr. - Cr.

Cash a/c. Dr. 50,000

To capital a/c. 50,000

Answer 2

The cash account will be debited and the capital account will be credited with Rs.50,000.

• When additional capital is introduced in a business, the cash invested in the business increases.
• As per the rules, when the amount of an asset increases, its account is debited in the books, and when a liability increases, its account is credited.
• The capital invested is a business's liability towards its shareholders and so its account is credited.
• Cash is an asset, so its account is debited.