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

To determine where the introduction of capital by the owner of a business is recorded in a cash book, we can analyze the nature of the transaction.

1. Nature of the Transaction

• The introduction of capital refers to the funds that the owner injects into the business, which increases the cash balance of the business.

2. Cash Book Overview

• The cash book typically has two sides:
  • Receipts Side: This side records all cash inflows to the business.
  • Payments Side: This side records all cash outflows from the business.

3. Recording the Capital Introduction

• Since the introduction of capital increases the cash resources of the business, it is classified as a receipt from the owner's perspective.

Final Answer

The introduction of capital by the owner of the business is recorded on the Receipts side of a cash book. Therefore, the correct answer is A. Receipts.