Question

amar commenced business with capital of rupess 75,000on 1st april ,2015......................expenses paid rupess 2,000

Answer 1

Cash a/c ., dr 75000
To Capital 75000

Answer 2

Given "Business commenced with 75000..paid expenses 2000"

this transaction affects two accounts... cash a/c(cash is brought in) an d capital a/c(capital introduced)..cash a/c and capital a/c are real accounts(all assets and liabilities come under it..here cash is an asset... capital is a liability).
expenses a/c is a nominal account(all expenses incomes gains losses come under it)

the three golden rules of accounting are

personal account - debit the reciever, credit the giver

nominal account- debit all expenses and losses, credit all incomes and gains

real account- debit what comes in, credit what goes out

so in contention with the above rules.. capital account should credited since cash is going out/liabilty is increasing..cash account should be debited since cash is coming in...

in second case.. expenses should be debited and cash should be credited..

so the journal entry will be

cash a/c Dr 75000

To capital a/c 75000

(being capital brought in)


expenses a/c Dr 2000

To cash a/c. 2000

(being expenses paid out of cash)