Started business with cash Rs 100000 and furniture Rs 50000

Question

asked Sep 19, 2022 76.5k views

1 Answer

Arie Van Wijngaarden · Answer 1 · 2022-09-25T02:00:51+0000

Answer:

See below

Step-by-step explanation:

Cash and furniture are assets. An increase in assets is debited. The amounts used to buy the in facilitating the transactions is the capital.

The journal entry will be as below,

Cash A/c Dr. Rs 100,000

Furniture A/c Dr. Rs 50,000

Capital A/c Cr. Rs 150,000