Question

anto commenced business with cash 20000 this question which is two aspects

Answer 1

cash A/c. Dr. 20000
to capital A/c. 20000

Answer 2

anto commenced business with cash 20000..


so this transaction affects two accounts ... Cash a/c and Anto's Capital apital a/c...they are Real accounts (because cash is an asset,capital is a liability..and all the assets and Liabilities come under Real account)

Here cash is coming in and liability (capital)is increasing (out Going affect)

we know that...
Personal Account - Debit the receiver, credit the giver

Real account - Debit what comes in, credit what goes out

Nominal Account - Debit All expenses and losses, credit All incomes and gains

so.... The Journal Entry will be..

cash a/c Dr. 20000

To Anto's Capital a/c. 20000

(being cash brought in as capital)