Question

Journal entries
Started a business with capital 500000 lakh

Answer 1

Hello!!

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Journal entry for started business with Cash/Capital will be

Cash account .Dr 5,00,000
To Capital a/c. 5,00,000
(being capital investe into business).

Here cash is increasing, which means assets are increasing in business. and we know that when asset increase we debit it and capital(liability) is also increasing. So, Capital account is being credited.

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Answer 2

Cash A/c Dr 500000

To capital A/c 500000

(Business started with cash)