Started business contributing Rs.50,000 in cash; Rs.4,50,000 in cheque, building valued Rs.20,00,000 and loan from a friend Rs. 1,00,000
Journal entry.
Cash A/c Dr. 1,50,000
Bank A/c Dr. 4,50,000
Building A/c Dr. 20,00,000
To Capital A/c 26,00,000
(for cash, cheques, building brought in as capital)
Note: Loan from friend is assumed to have been received in cash.
Bank A/c Dr. 4,50,000
Building A/c Dr. 20,00,000
To Capital A/c 26,00,000
(for cash, cheques, building brought in as capital)
Note: Loan from friend is assumed to have been received in cash.