Question

On 1st April, 2018, the position of Tendulkar was as follows: Stock-in-Hand ₹ 2,88,000; Bills Payable ₹ 48,000; Cash at Bank ₹ 2,16,000; Plant and Machinery ₹ 1,20,000; Owing by debtors ₹ 60,000; Owing to creditors ₹ 96,000; Investment ₹ 2,40,000, Loan from S.K. Garg ₹ 1,80,000. What was the amount of Tendulkar's capital on the date? Show an opening Journal entry.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2018
Apr 01	Stock in Hand A/c	Dr.		2,88,000
	Cash at Bank A/c	Dr.		2,16,000
	Plant & Machinery A/c	Dr.		1,20,000
	Owings by Debtors A/c	Dr.		60,000
	Investments A/c	Dr.		2,40,000
	To Owings to Creditors A/c				96,000
	To Loan from S.K. Garg A/c				1,80,000
	To Bills Payable A/c				48,000
	To Capital A/c (Balancing Figure)				6,00,000
	(Balances of Assets and Liabilities brought forward)

Opening Capital = Opening Assets – Opening Liabilities
Opening Capital = 9,24,000 – 3,24,000 = Rs 6,00,000