What is the journal entry of starting a business?
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What is the journal entry of starting a business?
For real accounts : Debit what comes in and credit what goes out . For personal accounts : Debit the receiver and credit the giver. Applying the Rules : Debit : Cash Account : Cash comes in business and rules of real account debit what comes in.
What is the journal entry for furniture?
According to the rule of Real Account, ( Debit what comes in, Credit what goes out ). Furniture is coming into the business, therefore, it will be debited and as cash is going out of the business, it will be credited. (Being Furniture purchased for Cash).
What is the journal entry for purchase of machinery?
Journal entry for purchase of machinery for cash
| Machinery a/c | Debit | Debit the increase in asset |
|---|---|---|
| To Cash | Credit | Credit the decrease in asset |
What is the journal entries for business started with cash?
Journal entry for started business with cash The cash a/c is debited as it is an asset for the business and the capital a/c is credited as it is a liability for the business according to the business entity concept.
What is the journal entry for started business with cash and goods?
Journal Entry: Commencement of Business: Drawing of Capital:
| Date | Particulars | Cr. (Rs.) |
|---|---|---|
| 1b | Cash A/C Dr Furniture A/C Dr. Computer A/C Dr. To Capital A/C (Being business started with cash, furniture and computer) | 3,00,000 |
| 1c | Cash A/C Dr Purchase A/C Dr. To Capital A/C (Being business started with cash and goods) | 2,50,000 |
What is the journal entry for cash in hand?
there is no journal entry for cash in hand , because its alredy entered… thats why its called cash in hand….
What is the journal entry for furniture purchased on cash?
Upon furniture purchase, the value of an asset is increased and according to the Rules of Debit and Credit, an increase in an asset A/c is debited . Further, cash is reduced according to the Rules of Debit and Credit. So Cash A/c would be credited.
What is the journal entry of cash in hand?