brought forward to the current year. This is done by means of a journal entry which is termed as "Opening Entry". All Assets Accounts are debited while all Liabilities Accounts are credited. The excess of assets over liabilities is the proprietor's capital and is credited to his Capital Account. This will be clear with the help of the following illustration: Illustration 3.5. Pass the Opening Entry on January 1, 1999 on the basis of the following information taken from the business of Mr. Sunil: Rs (i) Cash in Hand (ii) Sundry Debtors (ii) Stock of Goods (iv) Plant (v) Land and Buildings 10,000 (vi) Sundry Creditors 10.000 2.000 6.000 4.000 5.000 j37 LE RS Rs JOURNAL Date Particulars 1999 Cash A/C Dr. Jan.1 Sundry Debtors Ale Dr. Stock A/C Dr. Plant Alc Dr. Land and Buildings Ale Dr. To Sundry Creditors To Capital A/c (balancing figure) (Being balances brought forward from the last year) 2,000 6,000 4.000 5.000 10,000 10,000 17,000 27,000 27,000 Illustration 3.6. Journalise the following transactions in the books of a trader. Debit Balances on Jan. 1. 1999: Cash in hand Rs 8,000, Cash at Bank Rs 25,000, Stock of Goods Rs 20,000. Furniture Rs 2,000, Building Rs 10,000. Sundry Debtors: Vijay Rs 2,000, Anil Rs 1,000, and Madhu Rs. 2,000. Credit Balances on Jan. 1. 1999: Sundry Creditors: Anand Rs 5,000, Loan from Bablu Rs 10,000 Following were further transactions in the month of January, 1999: 2. Jan. 1, Purchased goods worth Rs 5,000 for cash less 20% trade discount and 5% cash discount 3. Jan. 4, Received Rs 1,980 from Vijay and allowed him Rs 20 as discount 4. Jan. 6. Purchased goods from Bharat Rs 5,000. 5. Jan. 8. Purchased plant from Mukesh for Rs 5.000 and paid Rs 100 as cartage for bringing the plant to the factory and another Rs 200 as installation charges. 6. Jan. 12, Sold goods to Rahim on credit Rs 600. 7. Jan. 15. Rahim became an insolvent and could pay only 50 paise in a rupee. 8. Jan. 18, Sold goods to Ram for cash Rs 1,000. 9. Jan. 20. Paid salary to Ratan Rs 2,000. 10. Jan. 21, Paid Anand Rs 4.800 in full settlement. 11. Jan. 26. Interest received from Madhu Rs 200 12. Jan. 28. Paid to Bablu interest on loan Rs 500. 13. Jan. 31, Sold Goods for cash Rs 500. 14. Jan. 31, Withdrew goods from business for personal use Rs 200