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Pass necessary journal entries for the following transactions 2020 April 1 business started with cash?
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Pass necessary journal entries for the following transactions 2020 Apr...
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.
Community Answer
Pass necessary journal entries for the following transactions 2020 Apr...
Cash A/c __________________________________ Dr.
To Capital A/c
To Capital A/c
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Pass necessary journal entries for the following transactions 2020 April 1 business started with cash?
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Pass necessary journal entries for the following transactions 2020 April 1 business started with cash? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about Pass necessary journal entries for the following transactions 2020 April 1 business started with cash? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Pass necessary journal entries for the following transactions 2020 April 1 business started with cash?.
Pass necessary journal entries for the following transactions 2020 April 1 business started with cash? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about Pass necessary journal entries for the following transactions 2020 April 1 business started with cash? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Pass necessary journal entries for the following transactions 2020 April 1 business started with cash?.
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