Question

From the following information calculate the total Assets of the business:
Capital 400000;creditor 300000;revenue earned during the period750000 ;expense incurred during the period 200000; value of unsold stock 200000

Answer 1

Answer:

                       Total assets are Rs.1,050,000

Explanation:

According to Accounting Equation;                                        

 Formula:                                                                                                           Total Assets = Owners Equity + Total liabilities

whereas; Net Profit=Total Revenue - Expenses- Unsold              =750000-200000-200000                                                               =Rs.350000

Owners Equity = Capital+Net Profit-Drawing                        =400000+350000-0                                                                         =Rs.750000

Hence,  Total Asset =750000+350000                                                 Total Assets = Rs 1,050,000

Hope you find it helpful :)

Answer 2

total asset = capital +liabilities+ profit

=4, 00, 000+3, 00, 000+(reveneue -expense- unsold stock)

=7, 00, 000+(7, 50, 000-2, 00, 000-2, 00, 00)

=7, 00, 000+(3, 50, 000)

=7, 00, 000+3, 50, 000

=10, 50, 000 .

total assets = 10, 50, 000