Ronald Scott starts his own business and opens a business account with £40,000.Using double entry bookkeeping,how would this transaction be recorded?

Question

Quizplus · Accepted Answer

When a business owner invests money into their business, the transaction is recorded by debiting the cash account, because the business is receiving money, and crediting the capital account, as this increases the owner's equity in the business.

Ronald Scott Starts His Own Business and Opens a Business