2.25 Opening Journal Entry 05 Opening journal entry is the entry given on the opening date to bring the balance of the accounts of assets and liabilities to the current year. Only one entry is given for all the assets and liabilities. It is in the form of a compound entry. All the assets are individually debited and all the liabilities including capital are individually credited. An opening entry appears as follows: Cash Dr. XXX Stock Dr. XXX Debtors Furniture Dr. Machinery Dr. Land and Building Dr. To Creditors * Bank loan Capital (Opening entry for the assets and liabilities) Dr. XXX XXX XXX XXX XXX XXX 99 XXX If the capital as on the opening date is not given the capital will be the difference between the total of assets and liabilities. Nlustration 9 Pass the opening Journal entry with the following information. Z Cash in hand 8,000 Stock 12,000 Building 20,000 Debtors 10,000 Furniture 10,000 Bank overdraft Creditors 14,000 Capital 40,000 6,000