Question No. 18 - Chapter No.8 - T.S. Grewal +1 Book 2019

Question No 18 Chapter No 8

On 1st April,2018, the position of Rahman was as follows: Cash in Hand Rs 11,200, Cash at bank Rs 2,57,600; Bills Receivable Rs 68,800: Jai Ram (Dr.) Rs 16,000; Ram Kumar (Dr.) Rs. 48090; Office Furniture Rs 52,800; Stock in trade Rs 4,16,000; Doulat Ram(Cr.) Rs 1,74,720, Hari Ram (Cr.) Rs 2,16,960; Bills Payable Rs 80,000. What was the amount of capital of Rahman on that date? Show the Journal entry to open his books. 

Solution of Question No 18 Chapter No 8: – 

So to solve this question first we have to prepare the working Note shown as below:

To Calculate the amount of capital we should use the following formula. 

“Capital = Total Assets – Total Liabilities”

To apply this formula we have to recognize the assets and liabilities accounts first. This is shown below: –

Name of Accounts Type of AccountDebit/ CreditReason of Debit/Credit 
Cash A/cAssetDebit All assets always have a debit balance.
Cash at Bank A/cAssetDebit All assets always have a debit balance 
Bills Receivable A/cAssetDebit All assets always have a debit balance 
Jai Ram A/cAssetDebit Any account which has a debit balance will be treated as an Asset.
Ram Kumar A/cAssetDebit Any account which has a debit balance will be treated as an Asset.
Office Furniture A/cAssetDebit All assets always have a debit balance 
Stock in Trade A/cAssetDebit All assets always have a debit balance 
Doulat Ram   A/cliability CreditAny account which has a credit balance will be treated as a Liability.
Hari Ram A/cliability CreditAny account which has a credit balance will be treated as a Liability.
Bills Payable A/cliability CreditAll Liabilities are always had a Credit balance 

Note: You did not need to prepare above table in the exam, Because this is just for your understanding.

Total Assets = 11200+257600+68800+16000+48080+52800+416000

Total Assets =  8,70,480/-

Total Liabilities =  174720+216960+80000

Total Liabilities = 4,71,680/-

So, 

Capital = 8,70,480 – 4,71,680

Capital = 3,98,800/- Ans.

Now Post this in the Journal daybook: –

In the Books of Rahman 

Date  Particulars
L.F.DebitCredit
1st April 2018Cash A/cDr. 11,200 
Cash at Bak A/cDr. 2,57,600 
 Bills Receivable A/cDr. 68,800 
 Jai Ram A/cDr. 16,000 
 Ram Kumar A/cDr. 48,080 
 Office Furniture A/cDr. 52,800 
 Stock in Trade A/cDr. 4,16,000 
           To Doulat Ram   A/c   1,74,720
           To Hari Ram A/c   2,16,960
           To Bills Payable A/c   80,000
           To Capital A/c (B.Fig)   3,98,800
 (Being opening balances of last year brought forward in the current year )   
     

 

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Check also Question No 17 Chapter No 8 – T.S. Grewal 11 Class

Check out T.S. Grewal +1 Book 2019 ir?t=tutorstips 21&l=ur2&o=31 - Question No 18 Chapter No 8 - T.S. Grewal 11 Class@ www.amazon.in

T.S. Grewals Double Entry Book Keeping - Question No 18 Chapter No 8 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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