Question

Calculate the amount of external equities as on 31st March ' 2015:
Amit started a business with a capital of ` 20,000 on 1st April,2014.On the same day, he also borrowed ` 5,000 from a friend to invest in business. During 2014-15, he earned a profit of ` 10,000, introduced an additional capital of ` 12,000 and had withdrawn ` 6,000 for his personal use. One 31st March, 2015, the total assets were ` 1,00,000.​

Answer 1

Answer: closing capital = opening capital  + additional capital + profit-            drawing

                   =  20000+5000+10000+12000-6000

                  =  41000

we know that total assets = total liabilities

or  total assets = closing capital + enternal equities

       100000 =   41000 + ?

        external equities = 100000- 41000

                                     = 59000