Question

At the beginning of an accounting year, a club has Rs.19000 assets, Rs.5000 liabilities and Rs.1800 debit balance of income and expenditure account, the opening capital fund is:
(A) 18000
(B) 11200
(C) 15800
(D) 24800
How can be solved?​

Answer 1

Answer:

Capital Fund = Extracted value of Assets + Debit bal. of Income and expenditure - Liabilities

Capital Fund = Rs. 19000 + Rs. 1800 -  Rs. 5,000

Capital Fund = Rs. 15,800

(C) 15800

PLZ MARK AS BRIANLIEST,FLW ME AND THX FOR THE SUPERB QUESTION

Answer 2

Answer:

(C) Opening capital fund = Rs.15800

Explanation:

Given:

1. Opening value of assets = Rs.19000
2. Opening Value of liabilities = Rs.5000
3. Debit Balance/ Profit of income & expenditure account = Rs.1800

Calculation of opening value of capital fund:

• Opening capital fund  = Opening value of assets + Opening value of liabilities - debit balance of income and expenditure account i.e. Rs.15800 (19000-5000+1800)

Capital or owners Equity = Assets - Liabilities + Profit or (Loss)