Transaction: Started business with cash 1000 on April 1, 2016

Explanation:
Starting a business involves various transactions, and one of the initial transactions is the investment of capital. In this case, Sudhir and Sons started their business on April 1, 2016, by investing cash amounting to 1000.

Journal Entry:
To record this transaction in Sudhir and Sons' books, we need to make a journal entry. The journal entry for this transaction will be as follows:

April 1, 2016:

Cash (Dr) 1000
Capital (Cr) 1000

Explanation of the Journal Entry:
- Cash: Cash is an asset and represents the amount of money the business has in hand. In this case, the business received cash amounting to 1000 as an investment from the owners.
- Capital: Capital is an equity account that represents the owner's investment in the business. By investing 1000 in cash, Sudhir and Sons increased their capital in the business.

Key Points:
- Sudhir and Sons started their business on April 1, 2016.
- The business was started by investing cash amounting to 1000.
- The investment of cash is recorded as an increase in the Capital account.
- The journal entry for this transaction includes debiting the Cash account and crediting the Capital account.
- The debiting of the Cash account reflects the increase in cash, while the crediting of the Capital account shows the increase in the owner's investment in the business.

Conclusion:
Starting a business with an initial investment of cash is a common transaction. By making the journal entry for this transaction, Sudhir and Sons correctly record the increase in their capital and ensure accurate financial reporting. Keeping track of such transactions is essential for maintaining proper books of accounts and evaluating the financial position of the business.

Cash a/c. 1000
To capital a/c. 1000