1.

Ram started business with cash

Answer»

EXPLANATION:

golden principles of accounting .

personal account RULE

dr- the receiver.

cr- the giver.

real account rule

dr- what comes in.

cr- what goes out.

nominal account rule.

dr- all expenses and losses.

cr- all incomes and gains.

the journal entry will be.

cash a/c dr

to capital a/c

( being business COMMENCED with cash).

here cash a/c is debited because it is coming into the business, refer real a/c rule.

here capital a/c is CREDITED because it is given by the proprietor. refer personal account rule.



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