Question

34) a) of the liabilities of a business are Rs. 75,000 and the capital Rs. 85,000. Find out the total assets. 1
b) A business has assets of Rs. 54,321 and owners' equity is Rs. 34,215. What is the amount of
Liability?
1
c) Cash Rs. 10,000, Stock Rs. 15,000, Building Rs. 10,000, Machinery Rs. 1,80,000, Debtors Rs.
45,000, Creditors Rs. 27,500. Ascertain the capital.
1
d) Total assets of A on 31 December, 2009 were Rs. 57,000. His liabilities were creditors Rs. 5,000,
bank overdraft Rs. 3000, Bills payable Rs. 7,000, Outstanding wages Rs. 2,000. Calculate his capital on
the above date.
1​

Answer 1

Explanation:

a) assets = capital + liabilities

assets= 85000+75000

assets= 160000/-

b) liabilities= assets - owner's equity ( capital )

liabilities = 54321 + 34215

= 88536/-

c) total assets = cash + stock + building+ machinery+ debtors

total assets = 2,60,000/-

capital = total assets - liabilities ( creditors )

= 2,60,000- 27,500

= 2,32,500/-

d) total liabilities = creditors + bank overdraft + bills payable + outstanding wages

total liabilities = 5000+3000+7000+2000

= 17,000 /-

closing capital = total assets - total liabilities

= 57,000 - 17,000

= 40,000/-

hope it helps