Question

1. If building is Rs 1,50,000 , Bills Receivable is Rs 50,000 and Sundry Creditors is Rs 40,000 the owners capital is Rs ______ *

Answer 1

The owners capital is Rs.1,60,000 .

Explanation:

We know,

1. Total Assets = Outside Liabilities + Owner's Capital

Here , we have ,

2. Total Assets = Buildings + Bills Recievable

= 1,50,000 + 50,000

= Rs. 2,00,000

3. Outside Liabilities= Sundry Creditors = Rs. 40,000

Thus ,

4. Owner's Capital = Total Assets- Outside Liabilities

= 2,00,000-40,000

= Rs. 1,60,000