Capital Entry
Cash Receipts Journal
by Vikash Naidu
(Auckland, New Zealand)
Q: Which accounts are affected and what is the entry for the following:
June 1: The owner invested an additional capital of $20,000 in the business bank account.
A: Whenever the owner invests funds this is capital and the account has the same name. If he is investing money this would be the cash/bank account .
So the entry would be as follows:
Debit: Bank...............$20,000
Credit: Capital....................$20,000
The type of journal in which this would be recorded would be the cash receipts journal , as it is a receipt of cash.
© Copyright 2009-2018 Michael Celender. All Rights Reserved.
Click here for Privacy Policy.
