Question

Shyam sunder and sons commenced business with cash 80000

Answer 1

Whenever business is started only one journal entry is used... and expect this name can't play any role in starting i e in journal entry.

JOURNAL ENTRY - -

Cash a/c dr.


To capital a/c

( being started business with cash )

. Always this entry is uses to start any type of business... and capital always be credit in every case as it is a liability of the business.

Answer 2

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Cash A/c - real A/c , where cash comes into the business , therefore its debited

Capital A/c - personal A/c , where owner gives to the company as investment , hes the giver , therefore its credited

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Journal Entry

Cash A/c Dr 80000

To capital A/c 80000

(being started business with bringing cash to the company)