An owner makes an investment of cash into the business.Such a transaction would include a:

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When an owner invests cash into the business, it is recorded as a debit to Cash, as cash is increasing in the business. There is no need for a credit entry, as the owner is not receiving anything in return yet that would warrant a credit to a revenue or equity account. Common shares (A) would only be affected if the owner was purchasing shares of stock in the business, which is not the case here. Accounts Receivable (D) represents amounts owed to the business by customers, and would not be affected by an owner's investment of cash.

An Owner Makes an Investment of Cash into the Business