Question

open a personal a/c by cheque. what will be the journal entry?
if u know then answer.

Answer 1

Hello!!

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Bank account Dr.
To capital account

( being Account opened ).

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It's a bit confusing entry:-

since a new account is being opened means it might be "debited".

So bank account has been Debited.

_____________________________________

personal account has been credited since , personal a/c. is opened for business purpose.

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Answer 2

"Given opened a personal a/c By cheque"

This transaction effects two accounts...bank a/c(payee bank) ,bank a/c (Payer bank)

As we know..Bank a/c is a real account(all the assets and liabilities come under it)


The Three golden rules of accounting are

Personal account - Debit the receiver credit the giver

Real account - Debit what comes in, credit what goes out

Nominal account - Debit All expenses and losses, credit All incomes and Gains

As Per the above rules...since amount is Going out from one bank it should be credited and amount is coming in to another bank..it should be debited..


So the Journal Entry will be -

Bank a/c Dr (payee)

To Bank a/c. (payer)

(Being Personal account opened through Cheque)