Pass necessary journal entries for the following transactions 2020 April 1 business started with cash?

Question

Pass necessary journal entries for the following transactions 2020 April 1 business started with cash?

Answer

Journal Entries for Business Started with Cash

Date: April 1, 2020

Transaction: Business started with cash

Explanation

When a business starts, it needs to record its transactions in a systematic manner. The first transaction that a business does is to bring in capital or money. In this case, the business started with cash, which means the owner brought in money to start the business.

Journal Entries

Journal entries for business started with cash are as follows:

Debit Cash account with the amount of capital brought in. (Asset account)

Credit Capital account with the same amount. (Owner's Equity account)

The above journal entries increase the assets and owner's equity of the business.

Journal Entries:

Date	Account	Debit	Credit
April 1, 2020	Cash	XXXX
	Capital		XXXX

Explanation of Journal Entries:

Debit Cash account with the amount of capital brought in - This transaction increases the cash balance of the business, which is an asset.

Credit Capital account with the same amount - This transaction increases the owner's equity, which is the amount of money that the owner has invested in the business.

By recording these journal entries, the business owner can keep track of the money invested in the business and the increase in assets and owner's equity. This information is important for financial statements and tax purposes.

Answer

Cash A/c __________________________________ Dr.
To Capital A/c

Answer

Cash A/c ....Debited.
To Capital A/c

Answer

Cash Dr
to capital

Answer

Cash Ac. db
to capital ac

Similar Class 11 Doubts

U 3. From the following transactions of Royal Enterprises Delhi, pass journal entries, post them into ledger and prepare trial balance after closing the accounts 2019 Assets : Cash 10,000; Debtors (Amit 6,000; Amar 5,5003; Sohan 7 4,500; Mohan?

Write the following transactions in the journal June 1 commenced buisness with cash rs. 15,000 June 2 bought goods for cash rs. 5,000 June 4 purchased goods From Ramesh rs 1,500?

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