Accountancy, asked by jot202004, 1 month ago

journal entry of purchased share for cash rs 44,000

Answers

Answered by Anonymous

Answer:

Shares purchase A/c . . . Dr - 44,000

To cash/bank A/c - 44,000

( Being share purchased )

Explanation:

According to the modern rule of debit and credit, assets when increased are debited.

When we are purchasing shares, we are buying a part of company or in other words, we are investing by purchasing shares. Investment is an asset. Our asset is increasing when we are buying shares. On the other hand, our other asset which is bank balance or cash is decreasing.

Therefore purchase of share will be debited and cash will be credited.

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