How To Pass Accounting Journal Entries For Owner’s Equity
Owner’ Equity Or Simply Equity is the rights of Owner /Owners, Shareholders or Stockholders in any type or kind business whether it is Sole Proprietorship or Company or Corporatio ns. It is to be noted that Normal Balance or Favouable Balance For Equity is Credit Balance. However, The General Rule For Equity During Recording of Business Transactions is that when the Equity increases, we debit it and when it decreases, we credit it in the Book or Journal of the Business. For More Details, You Can Read Out This Valuable Article In Detail, “ What is the Difference Between Debit And Credit ” After considering the above rule of Debit And Credit for Equity, we can easily apply this rule in the followi n g example: Mr. A started Business with Cash Rs. 100000. This is a Business Transaction, So Pass following Accounting Journal Entry in the Book of Business: ...