Commenced bussiness with csh and bank loan 100000 each
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
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