additional investment by the owner of 90000
To calculate the additional investment by the owner of $90,000, you would need to consider the context or purpose of the investment. Here are a few common scenarios:
1. Personal Investment: If the owner is investing $90,000 from their personal funds into their business, it would be considered a personal contribution. This would increase the owner's equity or capital in the business. To record this transaction, you would credit the owner's capital account by $90,000.
2. Business Expansion: If the owner is investing $90,000 to expand the business operations, such as purchasing new equipment, expanding a facility, or launching a new product line, this would be classified as a capital expenditure. To track this investment, you would typically create a separate account called "Additional Investment" or "Capital Expenditure" and debit it for $90,000.
3. Working Capital Injection: Another common scenario is when the owner invests additional funds to meet short-term operational needs or improve the business's working capital. In this case, you would debit the appropriate current asset account (such as Cash or Accounts Receivable) with $90,000, and credit the owner's capital or a liability account (such as Owner's Loan) with the same amount.
Remember, these are general scenarios, and the specific accounting treatment may vary depending on the nature of the business, accounting standards, and applicable regulations. It is always recommended to consult with an accountant or financial professional for accurate advice tailored to your specific situation.