Journal Commenced business with cash 10000
Date: [Current Date]
Journal Entry: Commenced business with cash 10000
Account Debit Credit
-----------------------------------------------
Cash on Hand 10000
Equity 10000
Explanation:
This journal entry reflects the initial transaction of starting a business by contributing cash funds. It records an increase in the cash account and an increase in equity, representing the owner's investment in the business.
Cash on Hand, a current asset, is credited with 10000, indicating an increase, as cash is received. On the other hand, Equity, which represents the owner's stake in the business, is debited with 10000, showing an increase in the owner's investment in the business.
By posting this journal entry, we establish a record of the business's financial position, noting the initial capital brought in by the owner.