Q. Record the opening entry from the following particulars on 1st april 2013:-

 
Cash in Hand 5000
Machinery  20000
Stock 10000
Sundry Debtors 18000
Sundry Creditors 9000
Furniture  12000
Bills Payble  11000
   
Answer : (Capital - Rs. 45000)  

Please answer with explaination.

Dear Student
The opening entry is passed by:
  • Debiting all assets
  • Crediting all liabilities
  • Crediting Capital with the balancing figure.
 
Journal
Date Particulars L.F. Debit
Amount
(Rs)
Credit
Amount
(Rs)
  Cash A/c Dr.   5,000  
  Machinery A/c Dr.   20,000  
  Stock A/c Dr.   10,000  
  Sundry Debtors A/c Dr.   18,000  
  Furniture A/c Dr.   12,000  
    To Sundry Creditors A/c       9,000
    To Bills Payable A/c       11,000
    To Capital A/c       45,000
  (Being balances brought forward)        
         
Hope this information clarifies your doubts. Keep posting :-)
Regards

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