1
Question
(a) A had a capital of ₹ 75,000 on 1st April, 2017. He had also goods amounting to ₹ 15,000 which he had purchased on credit and the payment had not been made. Find out the value of the total assets of the business.
(b ) After a period of one month , he came to know that he had suffered a loss of ₹ 1,700. He withdrew ₹ 800 for his personal use . Find out his capital and assets of the business.
(b ) After a period of one month , he came to know that he had suffered a loss of ₹ 1,700. He withdrew ₹ 800 for his personal use . Find out his capital and assets of the business.
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Solution
(a)
Total Assets
=
Capital + Creditors for purchase of Goods
=
75,000 + 15,000
=
Rs 90,000
(b)
Capital at the end
=
Capital − Loss − Drawings
=
75,000 − 1,700 − 800
=
Rs 72,500
Assets
=
Capital at the end + Creditors for purchase of Goods
=
72,500 + 15,000
=
Rs 87,500
| (a) | Total Assets |
= |
Capital + Creditors for purchase of Goods | ||||
| = | 75,000 + 15,000 | ||||||
| = | Rs 90,000 | ||||||
| (b) | Capital at the end | = | Capital − Loss − Drawings | ||||
| = | 75,000 − 1,700 − 800 | ||||||
| = | Rs 72,500 | ||||||
| Assets | = | Capital at the end + Creditors for purchase of Goods | |||||
| = | 72,500 + 15,000 | ||||||
| = | Rs 87,500 |
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