Question

Ram started business with cash

Answer 1

Explanation:

golden principles of accounting .

personal account rule

dr- the receiver.

cr- the giver.

real account rule

dr- what comes in.

cr- what goes out.

nominal account rule.

dr- all expenses and losses.

cr- all incomes and gains.

the journal entry will be.

cash a/c dr

to capital a/c

( being business commenced with cash).

here cash a/c is debited because it is coming into the business, refer real a/c rule.

here capital a/c is credited because it is given by the proprietor. refer personal account rule.

Answer 2

Answer

Let us recall the rules of journal

Golden Rules of Journal

Personal account rule

Debit- The receiver.  

Credit- The giver.  

Real account rule

Debit- What comes in.  

Credit- What goes out.  

Nominal account rule

Debit- All expenses and losses.  

Credit- All incomes and gains.  

Now

The journal entry will be

Cash A/C       DR

     To Capital  A/C

( Being Business started with cash)