Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 40 - No. 47)

A business owner deposits personal funds into the business bank account. What is the journal entry?

Debit Cash; Credit Owner's Drawings

Debit Cash; Credit Owner's Capital

Debit Owner's Drawings; Credit Cash

Debit Owner's Capital; Credit Cash

This increases the business's cash and is considered the owner's investment, increasing owner's equity (capital).