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bookkeeping question about start up capital

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › bookkeeping question about start up capital

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by AvatarJohn Moffat.
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  • June 8, 2016 at 4:30 pm #320936
    Avatarmadeleinec
    Member
    • Topics: 2
    • Replies: 7
    • ☆

    I have been revisiting some bookkeeping and the question gave the following information.

    01/05/2014 started business with £8000 in cash
    02/05/2014 put £7500 of cash into a bank account

    What are the accounting entries required?

    I thought for 01/05/2014 it would be DR Cash 8000, CR capital 8000
    then for 02/05/2014 DR bank 7500, CR cash 7500

    but in the further information about the rest of the month’s transactions it does not make reference to the remaining £500 of the start up cash which is not put in the bank account. So I am unsure what to do with it?

    Many thanks
    Madeleine

    June 9, 2016 at 8:00 am #321328
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54846
    • ☆☆☆☆☆

    Without seeing the whole question, it would seem that the 500 just stays in the cash account!

    I do suggest that you watch our free lectures for Paper F3 – they are a complete course and cover everything needed to be able to pass the exam well.

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