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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.
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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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Pass journal entries for the following transactions and post them to the ledger.
| 2017 Aug. | Particulars | ₹ |
| 1 | Dharma started business with cash | 70,000 |
| 6 | Cash received from Ganesan | 10,000 |
| 10 | Rent paid | 3,000 |
| 20 | Received commission from Anand | 5,000 |
Prepare Furniture A/c from the following transactions.
| 2016 Jan | Particulars | ₹ |
| 1 | Furniture in hand | 2,000 |
| 1 | Purchased furniture for cash | 4,000 |
| 30 | Sold furniture | 400 |
Show the direct ledger postings for the following transactions:
| 2017 June | Particulars |
| 1 | Raja commenced business with cash ₹ 50,000 |
| 6 | Sold goods for cash ₹ 8,000 |
| 8 | Sold goods to Devi on credit ₹ 9,000 |
| 15 | Goods purchased for cash ₹ 4,000 |
| 20 | Goods purchased from Shanthi on credit ₹ 5,000 |
Put ‘4’ mark for the nature of balance for the following.
| Account | Dr. Balance | Cr. Balance |
| 1. Capital A/c | ||
| 2. Goodwill | ||
| 3. Bank Overdraft | ||
| 4. Bills Receivable | ||
| 5. Creditors | ||
| 6. Drawings | ||
| 7. Advertisement | ||
| 8. Prepaid Rent | ||
| 9. Outstanding Salary | ||
| 10. Bad debts |
