Question

Manu started business with cash 10000 what is the journal entry

Answer 1

Answer:

cash account dr 10000

to capital account 10000

Explanation:

Cash , according to modern classification is an asset.

Increase in asset is debited, so cash account is debited.

According to traditional classification, cash is real account.

debit what comes in, credit what goes out.

following the rule, cash is debited.

Capital , according to modern classification is an capital account.

Increase in capital is credited, so capital account is credited.

According to traditional classification, capital is personal account.

debit the receiver, credit the giver.

following the rule, capital is credited.

Answer 2

Answer:

Explanation:

Cash a/c dr 10,000

To Capital a/c 10,000