Craig deposits $6,000 in an account to start a new business.He should debit Cash and credit his capital account.

Name: Craig deposits $6,000 in an account to start a new business.He should debit Cash and credit his capital account.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When Craig deposits $6,000 in an account to start a new business, he increases his assets (Cash) and also increases his equity (Capital). Therefore, he should debit Cash (as it increases) and credit his capital account (as it also increases).

Craig Deposits $6,000 in an Account to Start a New