How to Record an Owner's Capital Contribution: Journal Entries and Accounting Examples

An owner's deposit is recorded according to its purpose. A capital contribution increases cash and equity, while an owner loan increases cash and liabilities. Neither transaction is normally treated as sales revenue.

For example, an approved capital contribution of 10,000 is recorded by debiting Bank and crediting Capital for 10,000. If the amount is a loan, credit the appropriate Owner Loan Payable account instead. Document the transaction and follow applicable company and accounting requirements. Try Cash Cloud for free to explore accounting and financial reporting tools.