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:

Explanation:

Cash a/c. Dr. 80000

To capital a/c. 80000

Bank a/c. Dr. 20000

To cash a/c. 20000

Salary a/c. Dr. 4000

To bank a/c. 4000

Hope it helps you.

Answer 2

Answer:

cash a\c Dr. 80,000

To capital a\c 80,000

[being business commencing with cash]

banka\c Dr. 20,000

To cash A\c. 20,000

[being cash deposited in Bank account created]

salaries a\c Dr. 4000

To bank a\c. 4000

[being paid salary by cheque]