Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 20 - No. 35)
Which of the following is the correct journal entry for an owner investing equipment into the business?
Debit Cash, Credit Equipment
Debit Equipment, Credit Capital
Debit Drawings, Credit Equipment
Debit Capital, Credit Equipment
Explanation
Contributing equipment increases the asset account equipment (debit) and increases owner's equity (credit).
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