Accountancy, asked by Anandkumar9594, 1 year ago

Started business with cash ₹80000 and goods ₹40000

Answers

Answered by adityasuryavansh
0
capital a/c dr. 80000
purchase a/c dr. 40000
to cash 120000
Answered by sujiritha95
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

Cash A/c - real A/c , money comes into the business therefore its debited

Purchases - real A/c , Stock comes into the business therefore its debited

Capital A/c - personal A/c , where owner whos the giver of cash and goods to the business , therefore its credited

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Journal entry

Cash A/c Dr 80000

Purchases A/c Dr 40000

To Capital A/c 1200000

(being started business with cash And goods )

Hope its useful..!!

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