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19. Andrea started her business by transferring her car, worth $5,000, into the business.
What are the accounting entries required to record this?
Dr Car $5,000; Cr Drawings $5,000
Dr Capital $5,000; Cr Car $5,000
Dr Drawings $5,000; Cr Car $5,000
Dr Car $5,000; Cr Capital $5,000Many thanks for your help
definitely
DR Car $5000 to record the car as asset belong to the business – that means the assets of the business increased
CR Capital $ 5000 to record the increase of the owner capital in the business – that means the owner present a new capital ( the car value )
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