Question

if the total asset are ₹ 405000 and liabilities ₹ 55000 then the amount of partner's capital will be

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Answer 1

If the total asset are ₹ 4,05,000 and liabilities are ₹ 55,000, then the amount of partner's capital will be?

Answer: ₹ 3,50,000.

An accounting equation states that the assets of a business are always equal to the total of its capital and liabilities.

The equation can be expressed as :

Assets = Liabilities + Capital

So, Capital = Total assets - Liabilities

Capital = 4,05,000 - 55,000

Capital = ₹ 3,50,000

Thus, the amount of partner's capital will be ₹ 3,50,000.

Assets are anything that has a monetory value, owned by any business or organisation.

Eg. Land, Furniture, Building, Goodwill, etc.

Liabilities are the amount payable by the business unit.

Eg. Loan, Bank ODs. etc.

Capital is the amount invested into the business the by owner of firm. Excess of assets over liabilities are also called as Capital.