Question

On 1st April , 2018 , the position of Rahman was as follows : Cash in hand rupees 11200; Cash at bank rupees 2,57,600 ; Bills Receivable rupees 68,800 ;jai ram debtor 16000 ; ramkumar 48080; office furniture 52800 ; stock in trade 416000 ; doulat ram 174720 , hari ram 216960 ; Bills payable 80000 .What was the amount of capital of Rahman on that date ? Show the journal entry to open his books.

Answer 1

by subtracting the sum of all credit items from the sum of all debit items we get the capital.
hope it helps

Answer 2

"Journal Entry in the books of Rahman

Date: 05.03.2019

1. Cash A/C - DR → Debit: 11200

2. Bank A/C - DR → Debit: 257600

3. Bills Receivable A/C - DR → Debit: 68800

4. Jai Ram DR → Debit: 16000

5. Furniture A/C DR → Debit: 52800

6. Stock A/C DR → Debit: 416000

7. Bills Payable A/C DR → Debit: 80000

8. To Ram Kumar → Credit: 48080

9. To Doulat Ram → Credit: 174720

10. To Hariram → Credit: 216960

11. To Capital A/C → Credit: 462640

Note: Subtracting the total sum of all credit items from the sum of all debit items we get the capital amount."