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Investor Borrowed, million $ and put it as capital of new company .
Sorry I did not understand the question
In accounting, capital is an investment of money with the intention of earning a return. The investor invests capital with the intention of earning profit. As long as that money is invested, accountants will treat the capital as money owed to the proprietor by the business.
The basic accounting equation will be affected as follows.
* The asset s ( cash) will increase by the amount invested
* The liability ( capital) will increase by the same amount.Debit cash
Credit capital
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