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If we start business with cash and goods then what will be the entry for goods a/c and how it will place in tally
Dr Cash
Dr Inventory
credit capital account
here goods I presume that it is inventoy if the goods are fixed assets debit fixed assets
For Goods Entry
Purchase A/c Dr.
Capital A/c. Cr. Cr.
(if Goods given by Propritor to firm)
For Cash Entry
Cash Dr.
Capital A/c Cr.
Its will be :
1. Cash a/c Dr. 2000
To Capital a/c 2000
(Introduction of cash)
2. Purchase a/c Dr. 1000
to Cash 1000
(cash purchase) it will be done in pymt mode
Capital a/c will show a balance of 2000/- , Cash a balance of 1000/- and PnL a loss of 1000/- (in debit side)
Both sides tallied !!
Here entry is to be passed on the basis of Business entity concept..I agree with the posts made for the question
asked.
Wish you all the best for all your future endeavours,
Best regards,
Cash A/C Dr. .......
Purchase A/C Dr. ............
To Capital A/C ............
@ Apoorv : Your purchase entry is not correct. Since, its brought in by prop. and not purchased.
@ abhishek....are u asuming goods are brought in by the proprietor ??
@ Apoorv: I am not assuming, it seems from the question of Virag- "start business with cash and goods".
So, doesn't it means he brought in those two things.
okk abhishek...i didnt get it by the way the question in framed.....thanks for correcting !!
Its ok.
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