Emin Radwan In: Category - Journal EntriesWhat is started business with cash journal entry?journal entrystarted business with cash ShareFacebook1 AnswerVotedRecent Palaktripathi 2020-08-30T19:36:51+05:30Added an answer on August 30, 2020 at 7:36 pm To begin with, three types of businesses can be commenced i.e. sole proprietorship, partnership, and joint-stock company. As we all know, to start any business a certain sum of money has to be invested by the owner which is known as the capital of the business in terms of accounting.Journal entry for started business with cashThe cash a/c is debited as it is an asset for the business and the capital a/c is credited as it is a liability for the business according to the business entity concept.1. According to the golden rules of accounting:Cash a/cDebitDebit what comes inTo Capital a/cCreditCredit the giver(being business commenced with cash)2. According to the modern rules of accounting:Cash a/cDebitDebit the increase in assetTo Capital a/cCreditCredit the increase capital(being business commenced with cash)ExampleMr. A commenced business with cash (capital) amounting to 1,00,000. The journal entry in the books of Mr. A is as followsCash a/cDebit1,00,000To Capital a/cCredit1,00,000(being business commenced with cash)Hope this helps.6Reply Share ShareShare on FacebookShare on TwitterShare on LinkedInShare on WhatsAppLeave an answerCancel replyYou must login to add an answer. Username or email* Password* Captcha* Click on image to update the captcha. Remember Me! Forgot Password?