Question

Q9. Calculate the amount withdrawn by Suresh and total assets in the following case:- Suresh started business with a cash of Rs.2,00,000 as on 1st April 2010. During the year, he suffered a loss of Rs.20,000. On 31st March,2011 his capital stood at Rs.1,20,000, Bills payable at Rs.10,000 and bank Loan Rs.8,000. He also introduced a fresh capital of Rs.10,000 during the year and he had a bank overdraft of Rs. 6,000 on 31st March 2011.

Answer 1

Given
capital as on 31-3-11 (closing capital) = 120000

Capital as on 1-4-10 ( opening capital) = 200000

Fresh capital introduced during the year = 10000

Loss during the year = 20000

The amount withdrawn by suresh = closing capital - opening capital - fresh capital introduced + loss during the year

= 120000-200000-10000+20000
=70000


Given Liabilities

Bills payable= 10000
Bank overdraft= 6000
Bank loan= 8000
Closing capital = 120000


Then Total liabilities will be

= 120000+10000+8000+6000
=144000

We know that total liabilities (inclusive of capital) will be equal to total assets.. Therefore Total assets will be 144000..