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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

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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-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.png

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:

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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 extTotalCredits=extCreditors+extOrdinaryShareCapital ext{Total Credits} = ext{Creditors} + ext{Ordinary Share Capital}

Let the Ordinary Share Capital be represented as X: 574,900=61,000+X574,900 = 61,000 + X

Solving for X: X=574,90061,000X = 574,900 - 61,000 X=513,900X = 513,900

Thus, the value for the Ordinary Share Capital is €513,900.

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