Question

Mohan commences business with Rs. 5000000 in his bank account

Answer 1

Answer:

Bank a/c. Dr.

To capital A/c

Answer 2

Explanation:

Mohan is starting his business with Rs 5000000. Now Mohan is already introduced the capital to his business by bank.

Bank A/C is a debit balance and capital is a credit balance. so, the correct double entry for this transaction is,

Bank A/C - Dr

Capital A/C - Cr

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