Owner's personal payment as capital injection

Steps:

• Identify transaction: Owner uses personal funds to buy stationery for business.
• Recognize impact: Business gains stationery asset without using its own cash.
• Apply double-entry: Debit Stationery (asset increase); credit owner's equity.
• Conclude: Credit Capital to record owner's contribution.

Why A is correct:

• Capital account is credited per accounting equation (Assets = Liabilities + Capital) when owner introduces assets via personal payment, increasing business equity.

Why the others are wrong:

• B. Cash: Business cash unchanged, as payment from owner's personal funds.
• C. Drawings: Records owner withdrawals from business, opposite of contribution.
• D. Stationery: Debited as asset acquired, not credited.

Final answer: A