Why is the capital account credited and the cash debited
Because I thought the business is the capital and it's receiving cash into the business
I thought the capital account is supposed to be debited and cash to be credited
Pls explain to me
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Capital account is Personal account and rule of personal account is debit what comes in and credit what goes out according to rule proprietor is the giver so proprietor capital account is credited
Cash account is debit because cash is real nature account and rule of real nature account is debit what comes in and credit what goes out
so according to rule when proprietor started business with cash so cash comes in business so cash account is debited
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