i trial balance if someone commenced a business with cash at hand. how many accounts am i opening and how do i post them
If someone begins a business with cash at hand, they would open at least two accounts:
1. Cash account: This account would show the amount of cash the business owner brought to start the business.
2. Owner's equity account: This account would show the capital contributed by the owner to start the business.
To post these accounts, you would debit the Cash account to show an increase in cash (since the owner is bringing cash into the business). You would credit the Owner's equity account to show an increase in the owner's equity (since the owner is contributing capital to the business).
The journal entry to post these accounts would be:
Debit Cash
Credit Owner's equity
Once you have made these entries, you can create a trial balance by listing all the accounts and their corresponding debit and credit balances. The Cash account should have a debit balance (since cash is an asset) and the Owner's equity account should have a credit balance (since owner's equity is a liability).