Question

if income is 16000 and deficit debited to capital fund is 4300 then expenditure is
1) 4300
2)16000
3) 20300
4 ) non of these

and please explain how ​

Answer 1

Answer:

answer is 20300

Explanation:

because assets = liabilities+ capital

so we have capital=4300

income =16000

expenditure=4300+16000

ans. 20300

Answer 2

Given:

Total Income = Rs. 16,000

Deficit = Rs, 4,300

To Find:

The total expenditure

Solution:

There are two types of deficit namely fiscal and revenue and expenditure is always calculated after ascertaining them

As per accounting fundamentals expenditure when deficit is debited to capital fund is calculated as -

Expenditure = Total Income + Deficit

Thus, substituting the values in the equation-

Expenditure = 16,000 + 4300

= 20,300

Answer: The total expenditure is Rs. 20,300