Shona started an entity on 1 March 20.23. During the first month the entity had the following transactions:

Question

March 20.23

1. Bonga deposited R500 000 as capital in the entity’s bank account

Required

Record the above transaction by choosing the correct option from the drop down list

Account Dr

Account Cr

Amount Dr

Amount Cr

1.




R500 000

R500 000

Answer 1

To record the transaction where Bonga deposited R500,000 as capital in the entity’s bank account, you would typically make the following journal entry:

Date: March 1, 20.23

| Account | Dr | Cr | |----------------------|----------------|----------------| | Bank Account | R500,000 | | | Capital Contribution | | R500,000 |

So, the correct options for the dropdowns would be:

1. Account Dr: Bank Account
2. Account Cr: Capital Contribution
3. Amount Dr: R500,000
4. Amount Cr: R500,000

This reflects the increase in the bank account (asset) and the corresponding increase in owner's equity (capital contribution).