Accounting Multiple Choice Question – 13 September 2018

Which of the following double-entries is the correct way to record money received from shareholders as new capital into the business’s bank account?

Select ONE answer:

1. Account to Debit Capital / Account to Credit Bank
2. Account to Debit Cash / Account to Credit Capital
3. Account to Debit Bank / Account to Credit Capital
4. Account to Debit Capital / Account to Credit Cash

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 3 – This is the correct double entry record when a business receives new capital from shareholders into its bank accounts.

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor View all posts by stuart001uk2014