Answer to Question #242812 in Accounting for shan

Question

journal entry for commencement of business with incorporation

Answer 1

For commencement of business, it increases cash; therefore, cash account is debited and capital account is credited as it is a liability for the business according to the business entity. For commencement Sometimes, a business started with cash and other assets. In this situation, all the assets are debited individually, and capital account is credited as balancing figure.