Journal Entry for Starting Business with Rs.500000 and Paid into Bank Rs.400000

The journal entry for starting a business with Rs.500000 and paid into bank Rs.400000 can be prepared as follows:

Date | Particulars | L.F. | Debit (Rs.) | Credit (Rs.)
--- | --- | --- | --- | ---
[DATE] | Bank A/c | Dr. | 400000 | -
[DATE] | Capital A/c | Dr. | 100000 | -
[DATE] | To Cash A/c | Cr. | 500000 | -

Explanation:

The above journal entry is based on the following transaction:

- The business started with Rs.500000, out of which Rs.400000 was paid into the bank account and the remaining Rs.100000 was paid in cash.
- The bank account is debited with Rs.400000, as the amount is paid into it.
- The capital account is debited with Rs.100000, as the amount is invested by the owner in the business.
- The cash account is credited with Rs.500000, as the total amount of capital is introduced in the business.

The above journal entry shows the initial capital introduced by the owner in the business. It is important to record this transaction in the books of accounts to maintain accurate financial records.

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