Register now or log in to join your professional community.
A---------------------------------------------------------------
Option A=============================
Option A is the right answer.
The total amount Mr "A" invests should go into Assets (Cash Account) first and latter on called Capital all together.
Correct Answer is C . Mr. 'A's account will be credited with Rs.2,00,000/-
you credit capital account and debit cash in the balance sheet
Answer A... capital account............................................................
A) Capital account
Here Mr. A commenced business with cash Rs.200000. Journal entries for this transaction would be..
Cash a/c .....Dr 200000
To capital a/c 200000