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SSC Financial and Cost Accounting P-1 QUESTION #6072
Question 1

The owner of a firm used her own personal cash to buy office stationery for the business. Which account should be credited in the ledger?

  • Capital✔️
  • Cash
  • Drawings
  • Stationery
Correct Answer Explanation

When an owner introduces personal funds or assets into the business, it is treated as additional capital. The stationery account is debited (increase in expense), and the Capital account is credited (increase in owner's equity).