On 1st Jan. 2020, the position of Prakash was as follows: Stock in hand ₹2400, Bills payable ₹400, cash at bank ₹1800, plant and machinery ₹1000, debtors ₹500, creditors 800, investments ₹1300, loan from Sethi ₹1500. What was the amount of Prakash’s capital on this date? Show an opening entry.
Answers
Explanation:
total of assets--
stock. 2400
bank. 1800
plant machinery. 1000
debtors. 500
investment. 1300
-----------. 7000
Less total liabilities--
bills payable 400
creditors. 800
loan from Sethi 1500
----------. 2700
------------
Prakash's capital. 4300
-------------
Opening entry --
stock a/c dr. 2400
bank a/c dr. 1800 plant and machinery. 1000
debtor a/c dr. 500
investment a/c dr. 1300
to bills payable. 400
to creditors 800
to loan from Sethi. 1500
to capital a/c. 4300