Question

From the Balance Sheet given below, calculate:
(i) Fixed Assets (ii) Current Assets
(iii) Current Liabilities (iv) Working Capital

BALANCE SHEET as at 31st March, 2019
Liabilities	₹	Assets	₹
Trade Creditors	42,000	Stock in Hand	48,000
Expenses Accrued	3,200	Debtors	36,000
Bank Overdraft	4,800	Prepaid Expenses	400
Long-Term Loan	20,000	Goodwill	20,000
Interest on Loan	1,000	Land	20,000
Capital	93,400	Plant	32,000
		Furniture	8,000
	1,64,400		1,64,400

Answer 1

$\begin{array}{l}\text{(i) Fixed Assets}=\text{Land}+\text{Plant}+\text{Furniture}+\text{Goodwill}\\ =\text{20,000}+\text{32,000}+\text{8,000}+\text{20,000}=\text{Rs 80,000}\\ \text{(ii) Current Assets}=\text{Stock}+\text{Debtors}+\text{Prepaid Expenses}\\ =\text{48,000}+\text{36,000}+\text{400}=\text{Rs 84,400}\\ \text{(iii) Current Liabilities}=\text{Creditors}+\text{Expenses Accrued}+\text{Bank Overdraft}+\text{Interest on Loan}\\ =\text{42,000}+\text{3,200}+\text{4,800}+\text{1,000}=\text{Rs 51,000}\\ \text{(iv) Working Capital}=\text{Current Assets}-\text{Current Liabilities}\\ =\text{84,400}-\text{51,000=Rs 33,400}\end{array}$