Posting into a Ledger using Double-Entry System – Example 1
Open the necessary ledger account for the following business transactions using the Double entry system.
On Feb. 1, 2020, Kayode started a business with 50,000 cash.
- Identify the two accounts
Kayode’s capital A/C and A/C
- Which A/C is receiving and giving?
Kayode’s capital A/C is giving while cash A/C is receiving.
- Apply the Double-entry principle which is to debit the receiver and credit the giver.
- Draw the “T” a/c and do the posting.
Please Note: The word “started”, implies capital A/C