Under a double-entry accounting system, show how the entry for each transaction listed is entered in the ledger by choosing debit or credit to indicate the increase or decrease in the effected account.
-An increase in Share capital.
A) Debit
B) Credit

Question

Quizplus · Accepted Answer

An increase in Share Capital is recorded as a credit because it increases the equity of the company. In double-entry accounting, credits increase equity, liability, and revenue accounts.

Under a Double-Entry Accounting System, Show How the Entry for Each