**Journal Entry: Business Started with Cash**

When Ram Mohan starts his business with cash, it is important to record the transaction in the books of accounts using a journal entry. A journal entry is the first step in the accounting process and helps in maintaining accurate financial records. Here is how you can pass a journal entry for the business started with cash.

**1. Identify the Accounts Involved:**
First, we need to identify the accounts that will be affected by the transaction. In this case, the accounts involved are:
- Cash: Represents the amount of cash invested by Ram Mohan to start the business.
- Capital: Represents the owner's equity or the initial investment made by Ram Mohan to start the business.

**2. Determine the Amounts:**
Next, we need to determine the amounts for the accounts involved. If Ram Mohan invested Rs. 50,000 in cash to start the business, then the amount for the Cash account will be Rs. 50,000 and the amount for the Capital account will also be Rs. 50,000.

**3. Write the Journal Entry:**
Now we can write the journal entry. The format of a journal entry is as follows:
- Date: The date on which the transaction occurred.
- Account Title: The name of the account being debited or credited.
- Debit: The amount being debited from the account.
- Credit: The amount being credited to the account.

For the given transaction, the journal entry will be as follows:

Date: [Date of transaction]
Account Title | Debit | Credit
-----------------|--------|--------
Cash | 50,000 |
Capital | | 50,000

**4. Explanation of the Journal Entry:**
The journal entry represents the transfer of cash from the Cash account to the Capital account. The Cash account is debited as it is an asset account and the amount is being reduced. On the other hand, the Capital account is credited as it is an equity account and the amount represents the owner's investment in the business.

**5. Posting to the Ledger:**
After the journal entry is recorded, the amounts are posted to the respective ledger accounts. The Cash account will show a decrease of Rs. 50,000, and the Capital account will show an increase of Rs. 50,000.

By following these steps, you can pass a journal entry for the business started with cash. It is important to accurately record and maintain financial transactions to ensure the proper functioning and analysis of the business.

Journalise the following transaction:. Ram Mohan started businesses with cash