Question

Following balances existed in the books of M/s. Anand Stores as on 1st April, 2020:
Assets : Cash * 60,000; Bank * 40,000; Stock * 1,50,000; Furniture 43,000; Debtors
*1,45,000 (X 35,000; Y50,000; 260,000).
Liabilities : Loan from Vikas * 60,000; Creditors 52,500 (A * 22,500; B 30,000).
Pass necessary Journal entry to record the above balances. (Capital-3,25,500.]​

Answer 1

Answer:

record all assets in the debit side and liability in the credit side the difference between them is of 325000 which is the capital ( capital = Assets-liability ) the capital will be recorded in the credit section as capital reserve account

Explanation:

Answer 2

JOURNAL

Cash          A/c      Dr.         60,000

Bank          A/c      Dr.         40,000

Stock         A/c      Dr.        1,50,000

Furniture   A/c      Dr.           43,000

Debtors    A/c       Dr.        1,45,000

To  Loan from Vikas  A/c                                Cr.      60,000

To Creditors               A/c                                Cr.      52,500

To Capital                  A/c   (Balancing figure) Cr.   3,25,500

(Being Assets and liabilities recorded in the books)

*Calculation of Capital = 60,000+ 40,000+ 1,50,000+ 43,000+ 1,45,000-60,000- 52,500= Rs. 3,25,500

• The assets have a debit balance.
• The liabilities have the credit balance.
• If balancing figure is on debit side it will be Goodwill.
• If balancing figure is on credit side it will be Capital.

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