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Enter the following balances in the partially completed General Journal of Dolman Ltd: 1 January 2017 Bank €19,000 Creditors €61,000 Calculate the Ordinary Share Capital: Dolman Ltd – General Journal Date Details F Dr Cr € € Premises GL1 555,900 Bank CB1 19,000 Creditors CL1 61,000 Ordinary Share Capital GL2 Assets, Liabilities and Share Capital of Dolman Ltd on this date. - Junior Cycle Business Studies - Question 11 - 2017
Question 11
Enter the following balances in the partially completed General Journal of Dolman Ltd: 1 January 2017 Bank €19,000 Creditors €61,000 Calculate the Ordinary Share ... show full transcript
Worked Solution & Example Answer:Enter the following balances in the partially completed General Journal of Dolman Ltd: 1 January 2017 Bank €19,000 Creditors €61,000 Calculate the Ordinary Share Capital: Dolman Ltd – General Journal Date Details F Dr Cr € € Premises GL1 555,900 Bank CB1 19,000 Creditors CL1 61,000 Ordinary Share Capital GL2 Assets, Liabilities and Share Capital of Dolman Ltd on this date. - Junior Cycle Business Studies - Question 11 - 2017
Step 1
Calculate the Ordinary Share Capital:
Answer
To calculate the Ordinary Share Capital, we need to ensure that the total debits equal the total credits:
The total of the debits is:
- Premises: €555,900
- Bank: €19,000
Total Debits = €555,900 + €19,000 = €574,900.
The total of the credits currently is €61,000 from the creditors. To find the Ordinary Share Capital, we set up the equation:
Total Debits = Total Credits
Let the Ordinary Share Capital be represented as X:
Solving for X:
Thus, the value for the Ordinary Share Capital is €513,900.