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Ram started business with cash |
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Answer» 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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