PRC-1 · Chapter 2 · Question 23 of 100
Mr. Asad, a sole trader, introduces Rs. 1 million of his personal savings into the business bank account as additional capital. Which book of prime entry records this specific event?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Cash book
Explanation
Any transaction involving the receipt or payment of money through the business bank account, including the introduction of capital, is recorded on the receipt side of the cash book.
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