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 $5,000
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 )