Bank loan A/C Dr. 80000
To Capital A/ C 80000
(Being started business with Bank loan as capital ).

**Journal Entry for Starting Business with a Bank Loan of $80,000**

When a business is started with a bank loan, it involves recording the transaction in the accounting books. This process is known as journalizing and it helps in maintaining accurate financial records. In the case of a business starting with a bank loan of $80,000, the journal entry would be as follows:

**1. Debit Cash Account:**

The cash received from the bank loan is an asset and increases the cash balance of the business. Therefore, we debit the Cash account to reflect the increase. The amount debited would be $80,000.

**2. Credit Bank Loan Account:**

Since the business has borrowed money from the bank, it creates a liability for the business. The Bank Loan account represents the amount owed to the bank. To reflect this liability, we credit the Bank Loan account with $80,000.

**Journal Entry:**

| Date | Account | Debit | Credit |
|-----------|--------------------|---------|---------|
| [Date] | Cash | $80,000 | |
| | Bank Loan | | $80,000 |

**Explanation:**

- The journal entry records the increase in the Cash account with a debit of $80,000, as the business received the bank loan amount.
- The Bank Loan account is credited with $80,000 to represent the loan liability assumed by the business.

This journal entry helps to maintain accurate financial records by reflecting the inflow of cash and the corresponding increase in liabilities due to the loan. It also provides a clear audit trail and facilitates tracking the use of loan funds for business purposes.

It is important to note that the specific accounts used may vary depending on the business's chart of accounts. Additionally, any interest or fees associated with the bank loan would be recorded separately in accordance with the terms of the loan agreement.