Question

on the 1st April 2018, the position of Rahman was as follow cash-in-hand ₹ 11,200; cash at Bank ₹ 2,57,600; bill 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 amount of capital of Rahman on that date? Show the journal entries to opens his books.

Answer 1

here is ur answer=>
cash in hand a/c dr 11200
cash at bank a/c. dr. 257600
bills receivable a/c. dr 68800
Jai ram (Dr.) a/c. dr 16000
Ram Kumar (Dr)a/c dr 48080
office furniture a/c dr 52800
Stock in trade a/c. dr 416000
To Doulat Ram 174720
To Hari Ram. 216960
To bills payable a/c
80000
To capital a/c 398800

So,assets=970480
liabilities=471680
capital=970480-471680= 398800

hope it helps...