Introduction of Asset in the Business

by Paul
(Mauritus)

Becks introduced his van into the business $30000. What is the amount to enter in capital account if it was 36000 on 1 jan?

You can enter:

Dr Van $30,000
Cr Capital $30,000

(When the van is first entered into the business)

And then:

Dr Van $6,000
Cr Income $6,000

(To record van increase in value)

Best,
Michael Celender

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