Question

What is the journal entry for the capital paid into bank

Answer 1

Journal entry for capital paid into Bank --->

The Two Accounts affected in this transaction are ‛Bank A/c’ and ‛Capital A/c’. Bank A/c is a personal account and will be debited because of the rule of “Debit the Receiver”. Capital A/c is also personal account, So, it will be credited according to the rule of “Credit the giver”As the proprietor is the giver of capital to the bank.

So, the journal-entry for the above mentioned transaction is :―

Bank A/c. Dr ... (Amount)
To Capital A/c. (Amount)

(Being capital paid into Bank).