Introduction of capital by owner of business is recorded on which side of a cash book? A. Receipts B. Payments C. Incomes D. Expenditures

The correct answer is A. Receipts.

A cash book is a financial accounting document that records all cash receipts and payments for a business. It is a double-entry bookkeeping system, which means that every transaction is recorded in two accounts: one for the debit and one for the credit.

The receipts side of a cash book records all cash that comes into the business, such as sales, loans, and investments. The payments side of a cash book records all cash that goes out of the business, such as expenses, purchases, and dividends.

Introduction of capital by owner of business is a cash receipt, so it is recorded on the receipts side of the cash book.

Here are some explanations for each option:

• Option B, Payments, is incorrect because introduction of capital by owner of business is a cash receipt, not a cash payment.
• Option C, Incomes, is incorrect because introduction of capital by owner of business is not an income, it is a capital contribution.
• Option D, Expenditures, is incorrect because introduction of capital by owner of business is not an expenditure, it is a capital contribution.