?ram mohan started business with cash?

Question

Answer

Cash a/c Dr.
To Capital a/c cr.

( Being Ram Mohan started business with cash)

Answer

Starting Business with Cash

Starting a business with cash means that the business owner is financing the venture entirely with their own money, rather than taking out loans or seeking external investors. In this scenario, Ram Mohan is starting a business with cash, which has its advantages and disadvantages.

Advantages of Starting Business with Cash

No debt: Starting a business with cash means that there is no debt to repay, which can be a significant advantage. This allows the owner to retain full control of the business without having to answer to lenders or investors.

No interest payments: Without debt, there are no interest payments to make, which can save the business a significant amount of money in the long run.

Flexibility: When starting a business with cash, the owner has the flexibility to make decisions without worrying about the opinions of lenders or investors.

Disadvantages of Starting Business with Cash

Limited funds: Starting a business with cash means that the owner may have limited funds to work with, which can be a disadvantage if the business requires a significant amount of capital upfront.

No external support: Without external investors or lenders, the business owner is on their own. This can be a disadvantage if they need advice or support from experienced business professionals.

No credit history: Without taking out loans, the business owner may not have a credit history, which can make it difficult to secure financing in the future if needed.

Tips for Starting Business with Cash

Create a budget: When starting a business with cash, it's essential to create a budget and stick to it. This will help ensure that the funds are allocated appropriately and that the business doesn't run out of money unexpectedly.

Look for cost-saving opportunities: Without external financing, it's essential to look for cost-saving opportunities wherever possible. This might include negotiating with suppliers or finding ways to reduce overhead costs.

Consider alternative financing options: Even if you're starting a business with cash, it's still important to consider alternative financing options for the future. This might include taking out a loan or seeking external investors if the business needs to expand or if unexpected expenses arise.

Overall, starting a business with cash can be a viable option for entrepreneurs who have the necessary funds and want to retain full control over their business. However, it's important to weigh the advantages and disadvantages carefully and to plan accordingly to ensure the business's success.

Answer

Cash a/c . dr.
to ram Mohan cr.

Answer

Cash a/c dr
to capital a/c dr
( being business started)

Answer

Bougth goods from motilal

Similar Commerce Doubts

Transaction of Mohan traders are given blow show the effect of dose transaction on assist liabilities and capital with the help of accounting equation

Mohan started a business on 1st April 2018 with a capital of rupees 10,000 and borrowedrupees 300 from from a friend hi on a profit of 5,000 during the year and of 31st March 2019 and withdraw cash of 4000 for personal use what his capital on 31st March 2019?

Show the accounting equation Started business with cash:-50,000 Purchased goods from Ram on credit:-10,000 Cash sales:-2,000 Credit sales to hari:-1,500?

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