Question

Proprietor's fund =

Share capital + reserves & surplus -
losses & fictitious asset

Fixed assets


+ investments - working
capital




O Owners fund + owned fund
O
Share capital - reserves & surplus


-
losses & fictitious assets​

Answer 1

Explanation:

(iii) Computation of Proprietary fund; Fixed assets; Capital and Sundry payables ... and Net working capital = 0.25 Proprietary fund ... Change in Reserve & Surplus = ` 25, 00,000 – ` 20,00,000 = ` 5,00,000.