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    Question

    X has the following assets and liabilities as on 31st

    March, 2024. Determine his capital: Cash: ₹25,000 Bank: ₹47,500 Debtors: ₹18,000 Creditors: ₹22,000 Plant and Machinery: ₹80,000 Building: ₹2,00,000 Furniture: ₹24,000 Bills Receivable: ₹56,500 Bills Payable: ₹23,500
    A ₹3,80,000 Correct Answer Incorrect Answer
    B ₹4,05,500 Correct Answer Incorrect Answer
    C ₹4,51,000 Correct Answer Incorrect Answer
    D ₹4,25,000 Correct Answer Incorrect Answer
    E ₹3,50,000 Correct Answer Incorrect Answer

    Solution

    Capital is calculated using the formula: Capital = Assets - Liabilities Assets = Cash + Bank + Debtors + Plant and Machinery + Building + Furniture + Bills Receivable Liabilities = Creditors + Bills Payable Capital = (₹25,000 + ₹47,500 + ₹18,000 + ₹80,000 + ₹2,00,000 + ₹24,000 + ₹56,500) - (₹22,000 + ₹23,500) = ₹4,51,000 - ₹45,500 = ₹4,05,500

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