Leaning Online

Any amount which is invested by the owner of the business into the business is called capital in sole proprietorship type of business. The owner may invest Cash or Goods (Goods Purchased or Purchases ) to start the business. For example, if Mr. A, as a Sole Owner, invested Cash For Rs. 100000 to start the business on 1 st July, 2018. then here Capital is the right of the owner who invested in his business. The Accounting Journal Entry for Capital account is shown below: Capital Journal Entry                                                             Cash a/c     100000                                                         ...