Journal Entry for Modi Starting a Business with Rupees 200000
Starting a business involves recording financial transactions to accurately reflect the company's financial position. Below is the detailed journal entry for Modi starting a business with rupees 200000:

Initial Investment:
- Modi invests rupees 200000 into the business as the initial capital.
- The business will have a cash balance of rupees 200000.

Journal Entry:
- Debit: Cash (Asset) - rupees 200000
- Credit: Modi's Capital (Owner's Equity) - rupees 200000

Explanation:
- The cash account is debited as it increases with the capital injection.
- Modi's Capital account is credited to reflect his ownership of the business.
- This journal entry represents the initial investment made by Modi to start the business.
This journal entry accurately records the financial impact of Modi starting the business with rupees 200000. It is essential to maintain accurate and up-to-date financial records to track the business's performance and make informed decisions.