Question

Journalize the following transaction
5 feb 2016 business started with bank rs.50000

Answer 1

Answer:

Refer to the attachment.

Rules of Accounting:

Increase in assets or expenses/losses is debited and decrease in assets and expenses/losses is credited.

Increase in liabilities, income/gains and capital is credited and decrease in them is debited.

Explanation:

Bank is an asset for the business, so bank account is debited by Rs. 50,000 and, capital is a liability for the business (because the business has to return the capital to the owner in form of profits), the cpital account is credited by Rs. 50,000.