#accounts
rare field
azure canyon
Opening entry as in which opening ?? Opening balance wali entry or opening of business wali ??
rare field
opening of business wali journal entry
azure canyon
That time we bring in cash in the business therefore cash is the assets and it's debited. And 'capital' liability is created due to bringing of cash by the proprietor
rare field
im asking like in the questions when the credit side is short we add it to capital and if in debit side is short so what should i use the account to balance it
azure canyon
im asking like in the questions when the credit side is short we add it to capit...
It is goodwill. If the credit side is greater than the debit side then the excess amount is debited to Goodwill account.
Although this is known as opening balance entry and it is mostly passed when you transfer balances from one year to another. In no case, the credit side can exceed debit side when you start a business. Tu hi bata agar teri liabilities zyada hogi assets se toh business kyu start karegi. Plus new businesses don't have goodwill. This is for general knowledge only.
azure canyon
Do let me know if you have more accounts doubt 👍... I kinda love explaining accounting concepts 😂