Question

nauneet started business with cash mention the nature of account and also stated that wheth they debated or credited in tabular form

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Answer 1

Answer:

Cash a/c (Real ac).......................... Dr.

To Capital a/c (personal ac)

Explanation:

As per golden rule, Debit what comes in. So here cash is coming in the business or cash is an asset to business as Navneet is bringing cash and the value asset is increasing so Cash a/c is debited.

Capital a/c is a personal a/c. As per golden rule, Credit the giver so here Navneet is giving money to business or capital is a Liability and if it increases then it is credited. So here capital a/c is credited.