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    Paula Gomes's Avatar
    Paula Gomes Posts: 6, Reputation: 1
    New Member
    		  
    #1

    Feb 28, 2007, 09:57 AM
    Recording transactions in T-accounts
    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
    chiri's Avatar
    chiri Posts: 4, Reputation: 1
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    #2

    Feb 28, 2007, 10:17 AM
    Quote 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
    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)
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #3

    Feb 28, 2007, 08:44 PM
    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)
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