Diamond Ringo business was started when Mr. Diamond brought in a cheque of N500,000, which was paid into the bank account. Which of the following entries properly records the transaction?
a
Cash account was credited with N500,000 and capital account was debited with N500,000
b
Bank account was debited with N500,000 and capital account was credited with N500,000
c
Bank account was accredited with N500,000
d
Mr. diamond acount was debited with N500,000 and the cheque account was credited with N500,000
Explanation
Correct Option
bNo explanation available
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Discussions (3)
benzxee
11 years ago
All u nid to do z apply d principle of double entry system which z debit d recevier and credit d giver
IGBO
12 years ago
Mr diamond started the business with 500,000, which is known as the capital.And the capital was been paid into the bank A/C.
So therefore,capital A/C is the giver=Cr, while Bank A/C is the receiver=Dr....Ans=B
