Question

started bussines with a capital​

Answer 1

Answer:

Have a good day ahead ☺☺❤❤

Answer 2

Answer:

What is the journal entry for commenced business with cash?

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It is quite simple. In your question two accounts can be reflected, i . e. One is the Real Account i.e. Cash A/c and the another one is representative of personal A/c. i.e. Capital invested by owner of the business.

So, when you commence business with cash, you invest money into the business, which receives cash in the form of Capital which a liability to the business according to business entity concept.

So, when the cash comes in, we debit the Cash A/c and Credit the capital A/c adhering to the rules of Real Account and Personal Account which says” Debit what comes in whereas credit the giver. The capital invested in the business is a liability to the firm/concern and so it is credited.

So the journal entry is:

Cash A/c Dr 500

To Capital 500

(Being the amount brought up in the business as capital)

Hope this helps you