Cash A/C Dr 950000
To Capital A/C 950000
(business started with cash)

Commenced Business with Cash 950000 Journal Entry
In this scenario, when a business starts operations with cash, a journal entry needs to be made to record this transaction accurately. Below is a detailed explanation of how to record this transaction in the accounting books:

Step 1: Identify the Accounts Involved
- Cash Account: Represents the amount of cash the business has on hand.

Step 2: Understand the Transaction
- The business is starting operations and injecting cash amounting to 950,000 into the company.

Step 3: Journal Entry
- Debit Cash Account: To increase the cash balance, you need to debit the Cash account with 950,000.
- Credit Capital Account: Since the cash is being used to start the business, you need to credit the Capital account with 950,000 to reflect the owner's equity in the business.

Step 4: Recording the Journal Entry
- Journal Entry:
- Debit: Cash Account - 950,000
- Credit: Capital Account - 950,000

Step 5: Explanation
- By debiting the Cash account, we are increasing the asset side of the balance sheet, as the business now has more cash on hand.
- By crediting the Capital account, we are reflecting the owner's investment in the business, which increases equity.
By following these steps and recording the journal entry accurately, the business can effectively document the injection of cash into the company at the commencement of operations.