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In journal entries, The question is given. Q1. Rahul started business with cash Rs. 100000. I confused here, Ans is cash A/c to capital A/c or capital A/c to cash A/c?
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In journal entries, The question is given. Q1. Rahul started business ...
Answer:
Introduction: In business, there are different types of transactions that take place. One of the important transactions is the investment made by the owner in the business. In this journal entry, Rahul started a business with cash Rs. 100,000. The question is whether the entry should be cash A/c to capital A/c or capital A/c to cash A/c.
Explanation:
There are two methods to record this transaction, which are explained below:
1. Cash A/c to Capital A/c: In this method, the journal entry will be recorded as follows:
Cash A/c Dr. 100,000
To Capital A/c 100,000
Explanation: Here, cash A/c is debited because cash is coming into the business, and capital A/c is credited because the owner is investing in the business. This method is used when the owner invests cash in the business.
2. Capital A/c to Cash A/c: In this method, the journal entry will be recorded as follows:
Capital A/c Dr. 100,000
To Cash A/c 100,000
Explanation: Here, capital A/c is debited because the owner is investing in the business, and cash A/c is credited because cash is coming into the business. This method is used when the owner invests capital other than cash in the business.
Conclusion:
In this scenario, Rahul started the business with cash Rs. 100,000. Hence, the correct journal entry would be Cash A/c to Capital A/c. It means cash account will be debited and capital account will be credited.
Introduction: In business, there are different types of transactions that take place. One of the important transactions is the investment made by the owner in the business. In this journal entry, Rahul started a business with cash Rs. 100,000. The question is whether the entry should be cash A/c to capital A/c or capital A/c to cash A/c.
Explanation:
There are two methods to record this transaction, which are explained below:
1. Cash A/c to Capital A/c: In this method, the journal entry will be recorded as follows:
Cash A/c Dr. 100,000
To Capital A/c 100,000
Explanation: Here, cash A/c is debited because cash is coming into the business, and capital A/c is credited because the owner is investing in the business. This method is used when the owner invests cash in the business.
2. Capital A/c to Cash A/c: In this method, the journal entry will be recorded as follows:
Capital A/c Dr. 100,000
To Cash A/c 100,000
Explanation: Here, capital A/c is debited because the owner is investing in the business, and cash A/c is credited because cash is coming into the business. This method is used when the owner invests capital other than cash in the business.
Conclusion:
In this scenario, Rahul started the business with cash Rs. 100,000. Hence, the correct journal entry would be Cash A/c to Capital A/c. It means cash account will be debited and capital account will be credited.
Community Answer
In journal entries, The question is given. Q1. Rahul started business ...
Cash a/c dr. 1,00,00
To capital a/c.1,00,00
Since capital is always considered as a liability.
To capital a/c.1,00,00
Since capital is always considered as a liability.
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In journal entries, The question is given. Q1. Rahul started business with cash Rs. 100000. I confused here, Ans is cash A/c to capital A/c or capital A/c to cash A/c?
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In journal entries, The question is given. Q1. Rahul started business with cash Rs. 100000. I confused here, Ans is cash A/c to capital A/c or capital A/c to cash A/c? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about In journal entries, The question is given. Q1. Rahul started business with cash Rs. 100000. I confused here, Ans is cash A/c to capital A/c or capital A/c to cash A/c? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In journal entries, The question is given. Q1. Rahul started business with cash Rs. 100000. I confused here, Ans is cash A/c to capital A/c or capital A/c to cash A/c?.
In journal entries, The question is given. Q1. Rahul started business with cash Rs. 100000. I confused here, Ans is cash A/c to capital A/c or capital A/c to cash A/c? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about In journal entries, The question is given. Q1. Rahul started business with cash Rs. 100000. I confused here, Ans is cash A/c to capital A/c or capital A/c to cash A/c? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In journal entries, The question is given. Q1. Rahul started business with cash Rs. 100000. I confused here, Ans is cash A/c to capital A/c or capital A/c to cash A/c?.
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