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Journal entry for- Arun Govil and co. Paid into bank as capital Rs. 6,00,000?
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Journal entry for- Arun Govil and co. Paid into bank as capital Rs. 6,...
Bank a/c Dr. 6,00,000
To capital a/c 6,00,000
( Being cash paid to bank as capital )
To capital a/c 6,00,000
( Being cash paid to bank as capital )
Community Answer
Journal entry for- Arun Govil and co. Paid into bank as capital Rs. 6,...
Journal Entry for Arun Govil and Co. Paid into Bank as Capital Rs. 6,00,000
Explanation
When a company or business receives capital, it means that the owners or investors of the business have invested funds into the business. This money is used to finance the operations of the business, and in the long run, it helps the business grow and expand.
Journal Entry
The journal entry for Arun Govil and Co. paid into bank as capital Rs. 6,00,000 is as follows:
- Debit Bank Account – Rs. 6,00,000
- Credit Capital Account – Rs. 6,00,000
Explanation of Journal Entry
The above journal entry shows that the bank account of the business has been debited with Rs. 6,00,000, which means that the amount has been received by the business and deposited in the bank account. On the other hand, the capital account of the business has been credited with Rs. 6,00,000, which means that the amount has been invested by the owners or investors of the business.
It is important to note that the capital account is a part of the owner's equity section of the balance sheet, and it represents the owner's investment in the business. When capital is introduced into the business, it increases the owner's equity in the business.
Conclusion
In conclusion, the journal entry for Arun Govil and Co. paid into bank as capital Rs. 6,00,000 shows that the business has received an investment of Rs. 6,00,000 from the owners or investors of the business. This money will be used to finance the operations of the business and help it grow and expand in the long run.
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Journal entry for- Arun Govil and co. Paid into bank as capital Rs. 6,00,000?
Question Description
Journal entry for- Arun Govil and co. Paid into bank as capital Rs. 6,00,000? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Journal entry for- Arun Govil and co. Paid into bank as capital Rs. 6,00,000? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Journal entry for- Arun Govil and co. Paid into bank as capital Rs. 6,00,000?.
Journal entry for- Arun Govil and co. Paid into bank as capital Rs. 6,00,000? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Journal entry for- Arun Govil and co. Paid into bank as capital Rs. 6,00,000? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Journal entry for- Arun Govil and co. Paid into bank as capital Rs. 6,00,000?.
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