Question

Question 35.
Pass the Opening Entry from the following Balance Sheet as at 31st March, 2018 of Vikas:

Answer 1

Opening Entry from the Balance sheet of Vikas as at 31st March,2018.

Explanation:

            Land and Building A/c            Dr. Rs.1,50,000

            Plant and Machinery A/c        Dr. Rs.2,50,750

            Chandra and Sons  A/c          Dr. Rs. 71,270(Debtors)

            Closing Stock  A/c                  Dr. Rs.56,250

            Cash in Hand A/c                    Dr. Rs.15,700

            Cash in Bank A/c                    Dr. Rs.75,250

            Drawings A/c                            Dr. Rs.60,000

                       To Capital A/c                               Rs.6,25,230

                       To Salary Payable A/c                  Rs. 15,000 (outstanding)

                        To Magic Trades                          Rs. 27,220

                        To Babbar and Co.                      Rs.11,770

Note: Opening entry is nothing but a simple journal entry of all the assets and liabilities(With capital) shown together when the new financial year starts,i.e All assets and expenses are debited and all liabilities and capital are credited.