Question

Owner contributed his personal car in
business, we deal in motor car.which account
will be debited in this transaction?
A. sales
B. car
C. capital
D. purchases​

Answer 1

B. car

Asset a/c dr

To capital a/c

As asset comes in business and is real a/c so debited

Capital is credited because liability of business towards owner is increased as his personal car is bought in business