Question

Invested 40,000 in business and borrowed 50,000 from bank for business purpose journal entry

Answer 1

Answer:

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Assuming the business is mine. & I am Mr. X.

I will take a piece of paper, write the amount I borrowed from the relative. Take signature of my relatives, and mine too. Put a date on it. Make digital copies of it,Put it in a nice envelop & keep it in a safe.

And do the following entry.

Bank A/C Dr………. 40,000

To Capital A/C…….40,000

There is a difference between investors investing and relatives. Investors aren’t related to you, they put money on you because… you can make them more. Those money from investors can b