Question

On 1-4-2018 assets of the Ruby Club were as follows:
Land & Building Rs. 2,00,000, Furniture Rs. 25,000, Cash in hand Rs. 15,000,
Outstanding subscription Rs. 30,000.
Liabilities as on 1-4-2018:
Bank overdraft Rs. 20,000, Outstanding salary Rs. 5,000.
Find out Capital Fund.
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Answer 1

Answer:

2,45,000 capital

Explanation:

assets - liabilities = capital

(2,00,000+25,000+15,000+30,000)-(20,000-5,000) = capital

2,70,000-25,000=capital

2,45,000=capital