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

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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

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