Question

On 1st April, 2019, 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; Debtors ₹ 60,000; Creditors ₹ 96,000; Investment ₹ 2,40,000, Loan from Suresh ₹ 1,80,000. What was the amount of Tendulkar's capital on the date? Pass an opening Journal entry.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
April 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
	Debtors A/c	Dr.		60,000
	Investments A/c	Dr.		2,40,000
	To Bills Payable A/c				48,000
	To Creditors A/c				96,000
	To Loan from Suresh A/c				1,80,000
	To Capital A/c (Balancing Figure)				6,00,000
	(Being the balances of assets, liabilities and capital brought forward)

Therefore, the amount of Capital of Tendulkar on 1^st April, 2019 is ₹6,00,000.