Quick Reference Guide - Capital Investment in Cash by the Proprietor

Now let's come to discuss on the affected Ledger Accounts/Books of Account and Accounting Reports/Statements for Capital Investment in Cash by the Proprietor/Owner of a Sole Proprietorship Business.

Affected Ledger Accounts :

• Cash A/c - Debit

• Proprietor's Capital A/c - Credit

Journal Entry :

Ledger Posting :

• Cash A/c - Debit column.
  

• Proprietor's Capital A/c - Credit column.

'Capital A/c' can be mentioned in place of Proprietor's Capital A/c

Trial Balance :

• Cash A/c - Debit column of Trial Balance.

  Debit column of Trial Balance(Cash A/c) will be increased by the transaction amount.
  

• Proprietor's Capital A/c - Credit column of Trial Balance.

  Credit column of Trial Balance(Proprietor's Capital A/c) will be increased by the transaction amount.
  

Profit & Loss Account :

• No effect on Profit & Loss Account.

Balance Sheet :

• Cash A/c - under Current Assets in Assets side of Balance Sheet. 

  Cash A/c under Current Assets will be increased by the transaction amount.
  

• Proprietor's Capital A/c - under Capital Account in Liabilities side of Balance Sheet.

  Proprietor's Capital A/c under Capital Account will be increased by the transaction amount.
  

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