Question

Started business with cash =100000,stock=50000,furniture=30000 on jan1st journal entry emotion cash a/c ,stock, furniture debit To capital a/c

Answer 1

Cash Account dr.1,00,000

Stock Account dr 50,000

Furniture Account dr.30,000

.....To Capital Account ...........1,80,000

(Being started business with cash and variious assets )

Answer 2

The Cash account, Stock account and Furniture account will be debited and the capital account will be credited.

• A journal entry is the record of the financial transaction of a business in its financial books.
• The transactions of a business are recorded in a journal, which indicates the debit and credit balances.
• These specific entries can help in the authentication of transactions and also helps to know if they are supported with bills.
• In the given case business has been started with cahs where there is stock and furniture has been purchased. This increases the owner's equity in the business
• Thus, the correct journal entry will be -

Cash A/C  Dr.         100,000

Stock A/C Dr.         50,000

Furniture A/c  Dr    30,000

To Capital A/c        180,000

( Being the business started with cash and assets)

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