Please wait...
Contact Us
Contact
Need assistance? Contact us on below numbers

For Enquiry

10:00 AM to 7:00 PM IST all days.

Business Inquiry (North)

Business Inquiry (West / East / South)

OR

or

Thanks, You will receive a call shortly.
Customer Support

You are very important to us

For any content/service related issues please contact on this number

022-62211530

Mon to Sat - 10 AM to 7 PM

Commenced bussiness with csh and bank loan 100000 each

 

 

Asked by Kashishdhanani30 27th February 2020, 2:37 AM
Answered by Expert
Answer:

A business can be commenced in 2 ways:

  • By using own funds: Entry to be passed when own funds are used to commence business is follows:

            Cash A/c            ....Dr.

                To Capital A/c

  • By using borrowed funds: Entry to be passed when borrowed funds are used to commence business is follows:

             Cash or Bank A/c            ....Dr.

                 To Borrowings/Loan A/c

In the given situation, business is commenced with Cash and Bank Loan of Rs.1,00,000 each and therefore, entries passed will be as follows:
 
            Cash A/c                 ...Dr.   1,00,000
                To Capital A/c                     1,00,000
 
 
            Cash or Bank A/c     ...Dr.   1,00,000
                 To Borrowings/Loan A/c       1,00,000   
 
 
Answered by Expert 27th February 2020, 9:42 AM
Rate this answer
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10

You have rated this answer /10

Your answer has been posted successfully!

Chat with us on WhatsApp