Question

Dhaval commenced business with introduction of capital of 50000​

Answer 1

cash a/c dr 50000

to capital a/c 50000

Answer 2

When brought cash brought into the business by the owner then cash account is debited and capital account will be credited.

Explanation:

• Any cash or kind brought into the business by the Dhaval following journal entry will be made in the books of account.

Cash A/C is dr. 50,000

capital A/C is cr. 50,000

• Both cash account and credit account are real account, hence following statement should be considered.
• Debit what comes in and credit what goes out.
• The liability of the business owner in the sole proprietorship business is unlimited. They have to bring the personal asset to pay the debt of a business.