Question

mr.rohit shah started business with cash ₹ 10,000

Answer 1

Answer:

voice change-

Business was started with cash 10,000 by Mr. rohit shah.

Answer 2

Mr. Rohit started the business with cash and will increase his asset and capital by 10,000

Effect of this transaction on Journal -

Cash A/C DR 10,000

               To Capital A/C 10,000

( Being business started with cash )

Note-  When a business is started with cash, it increases cash as it is one of our assets and increases capital.

Accounting Equation -

Asset = Capital + Liability

10,000 = 10,000

( As business is started with cash so it is our asset and as well as it is our capital sothe  asset is increasing as well as capital )

The correct question will be that Mr. Rohit Shah started the business with cash 10,000 pass necessary journal entry.