Sanjeev started business on 1st April with a capital of Rs 60000 and a loan of Rs 32000 he introduced fresh capital of Rs15000 and withdrew Rs 8000 for his personal use he made a loss of Rs 4500 for the year ending 31st march 2019 calculate the capital and total assets of sanjeev as on 31st march 2019
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Closing Capital 62,500
Total assets 94,500
Explanation:-
Closing Capital = Opening Capital + Additional Capital - Drawings - Loss for the year
Total Assets = Liabilities + Owner's Equity
The equation must balance because everything the firm owns must be purchased from debt (liabilities) and capital (Owner's or Stockholder's Equity).
- Calculation of Closing capital of sanjeev as on 31st March 2019
Opening capital. 60,000
Add: Additional.
Capital. 15,000
Less: Drawing (8,000)
Less: Loss (4,500)
Closing Capital 62,500
- Calculation of Total assets as on 31st March 2019
Liabilities : (Loan) 32,000
add:
Owner's Equity: (Closing Capital) 62,500
= Total assets 94,500
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