Amit commenced business introducing as his capital furniture worth Rs. 21,000, a car valued at Rs. 30,000 and Rs. 48,000 in cash. The journal entry for recording this would require ____________________.

Debit in the three asset accounts, including cash and a credit in the Capital Account

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No journal entries

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Debit in the two asset accounts other than cash and a credit in the Capital Account

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Debit in the cash Account and credit in the Capital Account

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Solution

The correct option is A Debit in the three asset accounts, including cash and a credit in the Capital Account
The Journal Entry would be
Furniture a/c Dr. 21000
Car a/c Dr. 30,000
Cash a/c Dr. 48,000
To Capital a/c 99,000

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Similar questions

Q. Suppose P start a business with

R s . 50, 000

cash and then buys furniture from F.F. Co. on credit for

R s . 2, 000

. Now, the accounting equation

A s s e t s = C a p i t a l + L i a b i l i t i e s

will be __________________.

Ananya withdrew Rs. 2,000 per month for personal use, recording each transaction as a debit to her drawing account and a credit to her cash account. The journal entry closing the drawing account requires a credit to _______ account & debit to _______ account.

A and B were partners in a firm sharing profits and losses equally. Their firm was dissolve on 15th March, 2014, which resulted in a loss of Rs. 30,000. On that date the capital account of A showed a credit balance of Rs. 20,000 and that of B a credit balance of Rs. 30,000. The cash account had a balance of Rs. 20,000.
You are required to pass the necessary journal entries for the:
(i) Transfer of loss to the capital accounts of the partners and
(ii) Making final payment to the partners.

A

Amit commenced business introducing as his capital furniture worth Rs. 21,000, a car valued at Rs. 30,000 and Rs. 48,000 in cash. The journal entry for recording this would require ____________________.

The correct option is A Debit in the three asset accounts, including cash and a credit in the Capital AccountThe Journal Entry would beFurniture a/c Dr. 21000Car a/c Dr. 30,000Cash a/c Dr. 48,000 To Capital a/c 99,000

The correct option is A Debit in the three asset accounts, including cash and a credit in the Capital Account
The Journal Entry would be
Furniture a/c Dr. 21000
Car a/c Dr. 30,000
Cash a/c Dr. 48,000
To Capital a/c 99,000