Hello,

I have a doubt about how to record in a T-account a transaction of a personal automobile to the business. The automobile has a value of $18,000 and is to be used exclusively in the business.



Thank you.

Paula

Quote:

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Originally Posted by Paula Gomes

Hello,

I have a doubt about how to record in a T-account a transaction of a personal automobile to the business. The automobile has a value of $18,000 and is to be used exclusively in the business.



Thank you.

Paula

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Automobile to be debited by 18K ($18K on left hand side of Auto A/c) AND Capital to be credited for 18K (18K on right hand side of Capital A/c)

Did you BUY the automobile for 18,000?

If so, you.

Debit Automobile 18,000
Cr. Cash/Accounts Payable 18,000


The T account:

AUTOMOBILE
Add 18,000 to it (left side, since debits are left sides)

CASH or ACCOUNTS PAYABLE
Add 18,000 to it (right side, since credits are right sides)