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

    Practice Next