Here is a detailed explanation of how Modi Modi started a business with a 2 lakh journal entry:

Initial Investment:
- Modi Modi started the business by investing 2 lakh rupees as the initial capital. This amount is recorded as a journal entry in the accounting records to reflect the contribution of the owner(s) to the business.

Journal Entry:
- The journal entry for the initial investment would involve debiting the Cash or Bank account with 2 lakh rupees, as the money is coming into the business. The corresponding credit entry would be made to the Capital account of Modi Modi, representing the owner's contribution to the business.

Impact on Balance Sheet:
- This journal entry would impact the balance sheet of the business by increasing the Cash or Bank balance on the asset side and increasing the Capital account on the owner's equity side.

Use of Funds:
- The 2 lakh rupees invested by Modi Modi would be utilized for various business purposes such as purchasing inventory, equipment, paying for expenses, etc. These transactions would be recorded separately in the accounting records to track the utilization of funds.

Business Operations:
- With the initial investment in place, Modi Modi can now start operating the business and generating revenue. It is essential to maintain proper accounting records to track the financial performance and ensure the business's sustainability and growth.
This detailed explanation outlines how the journal entry of 2 lakh rupees invested by Modi Modi at the start of the business impacts the accounting records and sets the foundation for the business operations.