Record the opening entry from the following Assets and Liabilities as on January 1, 2015 : Particulars Amount Particulars Amount Cash at Bank 15,000 Sundry Debtors Sundry Creditors 30,000 13,000 Buildings 24,000 Machinery 40,000 Bills Payable 12,000 Describe the Overdraft

Finance Aug 13, 2020

Record the opening entry from the following Assets and Liabilities as on January 1, 2015 : Particulars Amount Particulars Amount Cash at Bank 15,000 Sundry Debtors Sundry Creditors 30,000 13,000 Buildings 24,000 Machinery 40,000 Bills Payable 12,000 Describe the Overdraft.

Expert Solution

Date	Particulars	Debit (Rs.)	Credit (Rs.)
1/1/2015	Cash	13,000
	Sundry Debtors	24,000
	Building	15,000
	Machinery	30,000
	Sundry Creditors		40,000
	Bills Payable		12,000
	Overdraft		30,000
	Total	82,000	82,000

Overdraft is a form short term working capital loan. This is the amount required to balance the debt and credit side. It's calculated as = total assets - total liabilities

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