Question

Journal entries July 1commenceed business with cash

Answer 1

Commenced business with cash..

This transaction affects two accounts ..Cash account (we are bring in cash) and capital account( commencing business with capital)

both of them are Real accounts (all assets and Liabilities come under it)

Rule for Real account is..

Debit What comes in credit, what goes out

cash is coming.so it should be debited..

Capital(liability is increasing) ..so it should be credited..

so the Journal Entry will be..

cash a/c Dr.. ××××

To Capital a/c. ××××

(Being business commenced with cash)

Answer 2

The Answer to this question is very simple. Even if you know some basics of accounting, you will be able to write journal entry for the above transaction.

The One Golden Rule Of Accounting is as follows:

Debit the Asset

Credit the Liability

Accordingly your journal entry will be as follows:

Cash Account Debit and;

Capital Account Credit.

Hope this helps. :)