Question

Seems started business with : cash rs 20,000 , plant rs 50,000

Answer 1

So the journal entry is going to be:

Cash a/c Dr. 20,000

Plant a/c Dr. 50,000

To capital a/c. 70,000

(Since cash and plant are assets so they are debited and capital is a liability so it's credited)

Answer 2

Answer:

Cash A/c   Dr   20000

Plant A/c    Dr   50000

    To Capital A/c     70000

Explanation:

Whenever any business is started it is necessary to bring in cash which is credited as capital of the business. But when any other asset is also brought into business the same is again stated as capital only.

Thus here both cash and plant being asset are debited , as debit what comes in and capital account is credited for both.