Question

transferred from private bank account of proprietor to business bank account ₹40,000 journal entry

Answer 1

Answer:

Bank A/c     Dr   40000

      To Capital A/c     40000

Explanation:

When a transaction in cash or by bank is made from a personal account to business account , the only recording is made in business records.

Such an amount is treated as capital being issued if nothing else is stated.

Thus in this case the amount being received in bank is debited to business' bank account and since capital is being introduced it will be credited to capital account.