Question

Mr X wants to purchase a piece of land costing Rs 10, 00,000. To do so, he has to borrow.

S.B.I agrees to finance if he can invest Rs 2, 00,000. For measuring the capacity of Mr. X the

banker ask two specific questions :

(i) What the things of value are you owned?,

(ii) How much do you Owe, and to whom?

Mr. X replies: Things I owned: Term deposit Rs 1, 00,000, Demand Deposit Rs 3, 00,000,

Other Personal Possessions Rs 1, 00,000. Things I owed: Loan from Friend: 1, 00,000

Now as a banker you have to:

(iii) Calculate Net worth of Mr. X

(iv) Prepare combined Financial Statement.

Answer 1

Answer:

his net worth will be 400,000

I found so