What is journal entry when started business with loan?

Answer 1

Depending on the size of the loan and/or the payment methods the following entry would be made to the journal.

Cash will be debited for the amount received

Notes Payable will be credited for the amount borrowed

More than likely the loan will be a substantial amount if starting a business and therefore will be paid out in a period consisting of more than a year. Therefore it would be recorded as a NOTE payable. However, if the company or person feels that they can make the full repayment of the loan in one year or less the accounts would change as follows

Cash will be debited

Accounts Payable will be credited.

Unfortunately this will not give us any Owners Equity or Capital. The accounting balance stays "balanced" because Assets = Liabilities + Owners Equity

Usually a person starting a business has to at least match the loan in investments. For example. I am starting a business and I want to borrow $10,000. If I match this with a personal investment the entries will change as follows.

Cash $20,000 (db)

Acc. Pay $10,000 (cr)

Owners Equity $10,000 (cr)

With out said matching your accounts will look like

Assets ($10,000) = Liabilities ($10,000) + OE ($0)

Answer 2

It's simply written as:-

Cash A/c (dr)

  To loan taken a/c

  To capital a/c

Answer 3

debit cash / bank
credit capital

Answer 4

Cash/ Bank a/c Dr.

Capital a/c Cr.