Question

Baisakh 1: Started business with cash Rs. 50,000 .
Baisakh 5: Purchased goods for Rs.10,000
Baisakh 15: Sold goods for Rs.20,000
Baisakh 25: Salaries paid by cheque Rs.5,000​

Answer 1

Journal entry for started business with cash

The cash a/c is debited as it is an asset for the business and the capital a/c is credited as it is a liability for the business according to the business entity concept.