Robert Plant invests $50,000 of his own money in a business.What journal entry should be made to record Robert's investment in the business?

Question

Quizplus · Accepted Answer

When an owner invests personal funds into their business, the business's cash account (an asset) increases, so it is debited. Simultaneously, the owner's equity account increases, reflecting the owner's claim on the business assets, so it is credited. Hence, "debit cash; and credit Robert Plant, capital" accurately records the transaction.

Robert Plant Invests $50,000 of His Own Money in a Business.What