Journal entries

Accountancy

In journal problems why bank account debited to capital for capital introduced transaction? Why can't we write cash account debited? Is it wrong if I debited cash account? Without clarity whether we are putting into bank directly or drawing from bank , we can debit or credit cash account right...

Anil Raj

CA Foundation

★ 580

09-Nov-22 23:27

529

Answers (3)

Best Answer

You can. But when huge amounts are involved, transactions happen through Bank account only. That's why using bank account.

Shankari C

CA Inter

★ 12K+

10-Nov-22 00:14

Bank a/c is preferable But there is no harm in writing cash a/c.

Sugam SM

CA Final

★ 9K+

10-Nov-22 08:15

The account to be chosen is at our discretion but, since a person is likely to commence a business with a large amount of cash, he is probably going to deposit the amount in a bank account for many reasons like safety etc

Jaswanth P

CA Inter

★ 3K+

10-Nov-22 22:57