I have been revisiting some bookkeeping and the question gave the following information.
01/05/2014 started business with £8000 in cash 02/05/2014 put £7500 of cash into a bank account
What are the accounting entries required?
I thought for 01/05/2014 it would be DR Cash 8000, CR capital 8000 then for 02/05/2014 DR bank 7500, CR cash 7500
but in the further information about the rest of the month’s transactions it does not make reference to the remaining £500 of the start up cash which is not put in the bank account. So I am unsure what to do with it?