Question

X has following assets and liabilities as on 31st March, 2019. Determine his capital. Cash ₹25,000,Bank ₹ 47,500, Debtors ₹ 18,000, Creditors ₹ 22,000, Pant and Machiney ₹ 80,000, Buliding ₹2,00,000, Furniture ₹ 24,000, Bills Receivable ₹ 56,500, Bills Payable ₹23,500.

Answer 1

Assest = Liabilities + Capital
Or Capital = Asseste- Liabilities
Or Capital = (Cash + Bank + Debtors + Plants and Machinery + Buliding + Furniture + Bills Receivable ) - (Creditors + Bills Payable)
= ₹(25,000 + 47, 500 + 18,000+ 80,000 + 2,00,000 + 24,000+ 56,500)- ₹(22,000 + 23,500)
=₹ (4,51,000 - 45,500 ) = ₹4,05,000.