Concept:When the owner invests cash into the business, the business receives cash and owes the owner that amount as capital.
Explanation:The business gains cash, so the cash account increases.
An increase in an asset account is a debit entry.
The owner supplies the money, so the capital account increases.
An increase in capital (owner’s equity) is a credit entry.
Therefore, the double entry is: debit cash account and credit capital account.
Answer:Debit cash account; credit capital account.
Correct option: A.