Question

On 1st April, 2018, the position of Rahman was as follows: Cash-in-Hand ₹ 11,200; Cash at Bank ₹ 2,57,600; Bills Receivable ₹ 68,000; Jai Ram (Dr.) ₹ 16,000; Ram Kumar (Dr.) ₹ 48,080; Office Furniture ₹ 52,800; Stock-in-Trade ₹ 4,16,000; Doulat Ram (Cr.) ₹ 1,74,720, Hari Ram (Cr.) ₹ 2,16,960; Bills Payable ​₹ 80,000. What was the amount of capital of Rahman on that date? Show the Journal entry to Open his books.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2018
Apr 01	Cash in Hand A/c	Dr.		11,200
	Cash at Bank A/c	Dr.		2,57,600
	Bills Receivable A/c	Dr.		68,800
	Jai Ram A/c	Dr.		16,000
	Ram Kumar A/c	Dr.		48,080
	Office Furniture A/c	Dr.		52,800
	Stock in Trade A/c	Dr.		4,16,000
	To Daulat Ram A/c				1,74,720
	To Hari Ram A/c				2,16,960
	To Bills Payable A/c				80,000
	To Capital A/c (Balancing Figure)
	(Balances of Assets and Liabilities brought forward)

Opening Capital = Opening Assets – Opening Liabilities
Opening Capital = 8,70,480 – 4,71,680 = Rs 3,98,800