The following is the balance sheet of Mr. Kanaka as on 31st December 2007.
Balance sheet
| Liabilities | Rs. | Assets | Rs. |
| Sundry creditors | 14,000 | Cash in hand | 400 |
| Bills payable | 4,000 | Cash at Bank | 7,600 |
| Capital | 26,000 | Stock of goods | 12,000 |
| | | Sundry debtors | 17,000 |
| | | Bills receivable | 1,000 |
| | | Furniture | 6,000 |
Pass the necessary opening entry in the books of kanaka on st January 2008.
