Question 18.
On 1st April, 2018, the position of Rahman was as follows: Cash-in-Hand ₹ 11,200; Cash at Bank ₹ 2,57,600; Bills Receivable ₹ 68,000; 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 the amount of capital of Rahman on that date? Show the Journal entry to Open his books.
Answers
The journal entries in the books of Rahman is shown below:
Explanation:
The journal entries in the books of Rahman are as:
2018
April 1
Cash in hand A/c..................................Dr Rs 11,200
Cash in Bank A/c..................................Dr Rs 257,600
Bills receivable A/c...............................Dr Rs 68,000
Jai Ram A/c.............................................Dr Rs 16,000
Ram Kumar A/c.......................................Dr Rs 48,080
Office Furniture A/c................................Dr Rs 52,800
Stock in Trade A/c...................................Dr Rs 416,000
To Daulat Ram A/c.......................................Cr Rs 174,720
To Hari Ram A/c............................................Cr Rs 216,960
To Bills Payable A/c......................................Cr Rs 80,000
To Capital A/c.................................................Cr Rs 398,800
Being balances of assets and liabilities and capital bought forward.
NOTE: The capital is the balancing amount.
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