From the following transactions, briefly explain the dual aspects of each transaction:
- Capital introduced Rs. 5,00,000
- Loan taken Rs. 3,00,000
Asked by Topperlearning User | 9th Jun, 2016, 12:29: PM
- Here, the business is receiving cash, and
therefore cash is debited. On the other hand, capital is a liability for
the business, and hence it is credited.
taken Rs. 3,00,000
the business is receiving cash by taking loan, and therefore cash is
debited. On the other hand, loan taken will stand in the book as a
liability because it has to be repaid on certain future date, and hence
loan account (i.e. loan taken) will be credited.
Answered by | 9th Jun, 2016, 02:29: PM
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