Introduction of Asset in the Business

by Paul

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)

Michael Celender

Comments for Introduction of Asset in the Business

Click here to add your own comments

pls check
by: Anonymous

van 30000

Incorrect. Capital is always a credit )right side) as it is owner's equity.

Van is asset = always left side (debit).

Michael Celender

Click here to add your own comments

Return to Ask a Question About This Lesson!.

Enjoying this Website?
Help Support it with a Donation


Advertise on

Additional Info

All the lessons on this site and much, much more...

Accounting Basics: Complete Guide

Available Now On

Get Your Degree!

Find schools and get information on the program that’s right for you.

Powered by

Subscribe to
The Student Accountant newsletter

Enter Your E-mail Address
Enter Your First Name (optional)

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you The Student Accountant.