Why we won't write person name in opening entry,
For example, Gopal started a business with cash 5000rs/-
entry will be
Cash A/c Dr
To Capital A/c
Why we won't write
Cash A/c Dr
To Gopal A/c
Thanks in advance
Menu
Why we won't write person name in entry
Replies (5)
Because in academics ,
gopal Could be your customer who is paying you money
or
he could be your supplier who is giving advance to you
gopal Could be your customer who is paying you money
or
he could be your supplier who is giving advance to you
the reason is if owner is initializing capital introduction and if u go with ur "name" entry than it wud mean like -
1. sm1 named gopal has given money to u
2. owner and busines ll be separatly considered (in case of proprietorship firm)
1. sm1 named gopal has given money to u
2. owner and busines ll be separatly considered (in case of proprietorship firm)
The business entity personal entity is different. Generally we do not write our name in our business books. We write other names to easily identify. For example In partnership business we writer partners capital account with their names for easilty identity purpose.
Debit all Assets
Credit All Liabilities
By this way, the balances of all ledgers can be carried forward
For Vistt:-https://www.profsindia.com/topic/opening-entry/#post-7301
Debit all Assets Credit All Liabilities By this way, the balances of all ledgers can be carried forward For Vistt:-https://www.profsindia.com/topic/opening-entry/#post-7301
Recent Threads
- Form 121 requirement
- Interest on reversal of ITC when ITC balance avail
- Is MirrorFly an Instant Messaging Software?
- ITR filling for legal heir
- How Can I qualify CA Final Exam?
- Wrong reporting on 22 april 2026 under article inc
- Articeship Form 107
- TAN for Multiple States
- Delivery Challan serial number Issue and return ru
- After filing form 71 For TDS mismatch
Related Threads
CAclubindia
