Question

in the beginning of the accounting year a club has rupees 18000 assets. rupees 5000 liabilities, rupees 1800 outstanding subscription of previous year. the opening capital fund is​

Answer 1

Answer:

18000-1800-5000=12200

Answer 2

Answer:

The opening capital fund of the club is ₹14,800

Explanation:

• In the previous year, to find the opening capital the asset are to be taken as base
• The less liabilities of the previous year should be deducted
• The outstanding subscription of the previous are reflected in balance sheet under current assets because it is income receivables so it should be added
• Opening capital fund

Assets = ₹18,000

Liabilities = (₹ 5,000)

Outstanding

Subscription = ₹ 1,800

Opening capital= ₹ 14,800

• Where it's a singles entry method of calculating the capital