personal car introduce in the business
.what is it entry.
Answers
Answer:
Analysis of the four transactions
Brought in Cash 50,000 towards Capital.
Capital a/c
↓
Personal a/c
↓
Credit
[Credit the benefit giver]Cash a/c
↓
Real a/c
↓
Debit
[Debit what comes in]
Contributed Motor Car worth 1,00,000 towards Capital
Capital a/c
↓
Personal a/c
↓
Credit
[Credit the benefit giver]Motor Car a/c
↓
Real a/c
↓
Debit
[Debit what comes in]
Contributed Furniture worth 20,000 towards Capital
Capital a/c
↓
Personal a/c
↓
Credit
[Credit the benefit giver]Furniture a/c
↓
Real a/c
↓
Debit
[Debit what comes in]
The business accepted to take over the responsibility of paying up Mrs. Rajus Bank Loan 50,000
Capital a/c
↓
Personal a/c
↓
Debit
[Debit the benefit receiver]Bank Loan a/c
↓
Personal a/c
↓
Credit
[Credit the benefit giver]
Since the responsibility of paying up Mrs. Raju's loan is being assumed by the organisation, Mrs. Raju stands (represented by Capital a/c) in the position of the benefit receiver and the organisation stands in the position of the benefit giver.