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1. The amount brought in by owner of the business should be credited to? (a) Owner Equity (b) Drawing c) Cash d) All of above |
| Answer» MOUNT brought in by OWNER of the BUSINESS should be credited to?→ SEPARATE entity concept defines that the business and its owner are treated two separate legal entities. Owner is considered as a creditor in the books of accounts of business. Amount contributed by the owner is a liability, and it is to be credited to CAPITAL account.→ The accounting entry will be as under: Cash A/c | |