1.

Give journal entry * Started business with cash rs 1000000of which 25% amount borrowed from wife

Answer»

As a start, your ASSET will increase as WELL as your EQUITY which makes it...

Cash      1 000 000

      OWNER's Capital      1 000 000

Since, the 25% came from the WIFE and is personal (not necessary to be recorded), it is only recorded as the owner's capital regardless on whom it came from.



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