Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 44 - No. 39)
Which accounts are affected when the owner invests cash in the business?
Debit Cash, Credit Drawings
Debit Drawings, Credit Cash
Debit Cash, Credit Capital
Debit Capital, Credit Cash
Explanation
Investing cash in the business increases cash (debit) and increases capital (credit).
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