On 1st Jan. 2020, the position of Prakash was as follows: Stock in han

1.	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.
Answer» 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

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.

Answer»

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

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