13. Cash Rs.50000, Debtors Rs.30,000, Stock Rs.20,000, Creditors Rs.25,000. What will be the amount of capital?
a) Rs 5500:
b) Rs 125000
C)Rs 75000
d) Rs 45000
Answers
Answered by
9
Explanation:
B)Rs.125000 is your answer mate.
Answered by
0
GIVEN : Cash = 50,000 ; Debtors = 30,000 ; Stock = 20,000 ; Creditor = 25,000
TO FIND : Amount of Capital
SOLUTION :
ASSSET = LIABILITIES
Asset are those valuable things which helps to run business and they can be converted into cash , they are basically resource which increase the economic value.
Liabilities are those which we have but need to repayed when demanded .
Cash + Debtors + Stock = Creditor + Capital
50,000 + 30,000 + 20,000 = 25,000 + Capital
1,00,000 = 25,000 + Capital
1,00,000 - 25,000 = Capital
75,000 = Capital
Capital is that amount which we invest in our business to keep it going and it is a liability as firm have to repay it.
Option C is correct i.e. 75,000.
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