how to do this equation (fresh capital invested) RS.50,000????????? plzz answer it fast..........
Dear Student,
Fresh Capital invested Rs 50,000 - It means additional capital is introduced in the business in form of Cash (if nothing is mentioned about the mode of investment)
In this case,
Accounting Equation will be:
1) Increase Cash with Rs 50,000 on the Assets side
2) Increase Capital with Rs 50,000 on the Liabilities side.
Hence, both the sides are tallied with increase of Rs 50,000.
In Journal, the following entry will be passed:
Cash A/c Dr. 50,000
To Capital A/c 50,000
(Fresh capital introduced)
Cash is debited as Cash is increasing (Cash being an asset)
Capital is credited as Capital is increasing.
Hope this answers your query.
Keep posting for further doubts!!
Fresh Capital invested Rs 50,000 - It means additional capital is introduced in the business in form of Cash (if nothing is mentioned about the mode of investment)
In this case,
Accounting Equation will be:
1) Increase Cash with Rs 50,000 on the Assets side
2) Increase Capital with Rs 50,000 on the Liabilities side.
Hence, both the sides are tallied with increase of Rs 50,000.
In Journal, the following entry will be passed:
Cash A/c Dr. 50,000
To Capital A/c 50,000
(Fresh capital introduced)
Cash is debited as Cash is increasing (Cash being an asset)
Capital is credited as Capital is increasing.
Hope this answers your query.
Keep posting for further doubts!!