Question

Started business with cash rs 30000 and bank balance rs 50000​

Answer 1

The student's question is about setting up a business with initial cash and bank balances, which is an aspect of creating an initial balance sheet. A similar financial concept applies to constructing a balance sheet for a bank, where assets, liabilities, and net worth must be tallied.

Step-by-step explanation:

The question relates to accounting and finance, specifically concerning the initiation of a business with cash and bank balances, which can be represented on a balance sheet. Using a balance sheet, one can show the initial financial position of a business. In this scenario, the business starts with assets including cash of Rs 30,000 and a bank balance of Rs 50,000. To illustrate a related concept, let's consider a hypothetical example.

A bank, let's call it ABC Bank, has a bank balance sheet that shows the following: deposits of $400, reserves of $50, government bonds worth $70, and loans of $500. The balance sheet would list the bank's assets, which include the reserves, government bonds, and loans, and its liabilities, which would typically be the deposits. The net worth, also known as equity, would be the difference between the total assets and total liabilities.

Answer 2

Answer and Explanation:

The journal entry is shown below:

Cash Dr 30,000

Bank Dr 50,000

To Capital 80,000

(Being cash and bank brought into the business)

Here the cash and bank is debited as it increased the assets and credited the capital as it also increased the equity