Question

Invested in the business as capital journal entry

Answer 1

Debit – What came into the business
Cash was deposited into the business bank account with the introduction of capital.

Credit – What went out of the business
The 1,000 capital represents your investment in the business and indicates ownership and an entitlement to a share of the profits. The capital introduced, together with retained earnings, forms the owners equity of the business.

Answer 2

Answer:

Cash A/c __________ Dr. (1,00,000)

to Capital A/c (1,00,000)

(Being Cash invested in business)