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Question
The following balances appeared in the books of Vinoth on Jan 1, 2018
| Assets | ₹ | Liabilities | ₹ |
| Cash | 40,000 | Amount due to Vijay | 10,000 |
| Stock | 50,000 | ||
| Amount due from Ram | 20,000 | ||
| Machinery | 40,000 |
Pass the opening journal entry and post them to Vinoth’s Capital account.
Solution
Opening Entry in the Books of Vinoth
| Date | Particulars | L.F. | Debit ₹ | Credit ₹ |
| 2018 Jan. 1 |
Cash A/c ...........Dr. Stock A/c .........Dr. Debtors A/c (Ram) .......Dr. Machinery A/c .......Dr. To Creditors A/c (Vijay) To Vinoth Capital A/c (B.F.) (Business started with assets and liabilities) |
40,000 50,000 20,000 40,000 - - |
- - - - 10,000 1,40,000 |
Vinoth’s Capital Account
Dr. Cr.
| Date | Particulars | J.F. | ₹ | Date | Particulars | J.F. | ₹ |
| 2018 | 2018 | ||||||
| Jan. 31 | To Creditors A/c | 10,000 | Jan. 1 | By Cash A/c | 40,000 | ||
| To Balance c/d | 1,40,000 | By Stock A/c | 50,000 | ||||
| By Debtors A/c | 20,000 | ||||||
| By Machinery | 40,000 | ||||||
| 1,50,000 | 1,50,000 | ||||||
| Feb. 1 | By Balance b/d | 1,40,000 |
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