Journal Entry for Capital

The amount invested in the business whether in the means of cash or kind by the proprietor or owner of the business is called capital. The capital account will be credited and the cash or assets brought in will be debited.

Journal Entry:

Example 1: Sahil started his business with cash, furniture, and a Motorbike ₹10000, ₹20000, & ₹30000, respectively.

Solution:

Example 2: Business started with cash, stock, and land ₹50,000, ₹1,00,000, and ₹8,50,000, respectively.

Solution:

Article Tags :

Accountancy

Commerce

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