Question

On 1st April, 2019, the position of Rahman was as follows: Cash-in Hand ₹ 11,200; Cash at bank ₹ 2,57,600; Bills Receivable ₹ 68,800; 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? Pass the Journal entry to Open his books.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
April 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’s A/c	Dr.		16,000
	Ram Kumar’s A/c	Dr.		48,080
	Office Furniture A/c	Dr.		52,800
	Stock-in-Trade A/c	Dr.		4,16,000
	To Doulat Ram’s A/c				1,74,720
	To Hari Ram’s A/c				2,16,960
	To Bills Payable A/c				80,000
	To Capital A/c (Balancing Figure)				3,98,800
	(Being the balances of assets, liabilities and capital brought forward)

Therefore, the amount of Capital of Rahman on 1^st April, 2019 is ₹3,98,800.