Accounting for IGCSE & O level - Accounting Procedures (Section 10 - No. 37)
When a business receives cash from the introduction of owner's equity, which of the following entries are recorded?
Debit bank account and credit bank loan account.
Debit capital account and credit bank account.
Debit bank account and credit owner's equity.
Debit owner's equity and credit bank account.
Explanation
The cash enters the bank account (debit) and increases owner's investment in the business (credit).
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