Question

what would be the journal entry for additional capital introduced in the form of building?
— capital to building
— building to capital
— building to cash
— building to sale

Answer 1

Answer:

building to capital

Explanation:

Increase in capital is credited and decrease in capital is debited For example, additional capital introduced by owner. The journal entry is: Cash A/c Dr. To Capital A/c As additional capital is introduced, so the amount of capital will increase, i.e. why, capital account is credited.