Question

Writs journal entry for the following transaction and explain accounting

treatment based on equation:

(i) Commenced business with capital of ` 80,000.

(ii) ` 20,000 deposited with bank and opened account.

(iii) Salary of ` 4000 paid by cheque.​

Answer 1

Answer:

cash A/c ...... dr. 80000

to capital a/c. 80000

(being business started)

bank A/c.........dr. 20000

to cash A/c. 20000

( being cash deposit in bank)

salaryA/c .........dr. 4000

to bank A/c. 4000

( being salary paid by cheque.)

Answer 2

$\begin{gathered}\large {\boxed{\sf{\mid{\overline {\underline {\star ANSWER ::}}}\mid}}}\end{gathered}$

JOURNAL

__________________________

Date. Particulars. LF. Dr. Cr.

__________________________

(i). Cash A/C. Dr. 80,000

To Capital A/C. 80,000

(Being the business started)

__________________________

(ii). Bank A/C. Dr. 20,000

To Cash A/C. 20,000

(Being the cash deposited on bank)

__________________________

(iii). Salary A/C. Dr. 4,000

To Bank A/C. 4,000

(Being the salary paid by cheque)

__________________________

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