Question

purchased 200 shares of nabil bank @ Rs.10000. journal entries

Answer 1

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Investment in shares - Real A/c , where we brought shares , its investment to the company therefore its debited

Cash A/c - real A/c , where money goes out of the company therefore its credited

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Journal entry

Investment in shares   A/c     Dr    10000    

        To Cash A/c                                                    10000

(being invested in nabil bank @ 200 shares )