Entry Posting

Dr Cash

Dr Inventory

credit capital account

here goods I presume that it is inventoy if the goods are fixed assets debit fixed assets

For Goods Entry

Purchase A/c Dr.

Capital A/c. Cr.   Cr.

(if Goods given by Propritor to firm)

For Cash Entry

Cash Dr.

Capital A/c Cr.

Its will be :

1. Cash a/c   Dr.          2000

       To Capital a/c              2000

    (Introduction of cash)

2.  Purchase a/c  Dr.        1000

        to Cash                           1000

     (cash purchase) it will be done in pymt mode

Capital a/c will show a balance of 2000/- , Cash a balance of 1000/- and PnL a loss of 1000/- (in debit side)

Both sides tallied !!

Here entry is to be passed on the basis of Business entity concept..I agree with the posts made for the question

asked.

Wish you all the best for all your future endeavours,

Best regards,

Cash A/C Dr. .......

Purchase A/C Dr. ............

To Capital A/C ............

@ Apoorv : Your purchase entry is not correct. Since, its brought in by prop. and not purchased.

@ abhishek....are u asuming goods are brought in by the proprietor ??

@ Apoorv: I am not assuming, it seems from the question of Virag- "start business with cash and goods".

So, doesn't it means he brought in those two things.

okk abhishek...i didnt get it by the way the question in framed.....thanks for correcting !!

Its ok.