Question

Sarath started business with cash rs 500000 , stock rs 300000 and availed a bank loan for rs 200000 .saraths capital worth_?

Answer 1

Answer: 5,00,000 is the answer

Explanation:this is because that his capital worth remains the same and 2,00,000 here is liability and 3,00,000 is the asset

Answer 2

GIVEN: Cash = 5,00,000 ; Stock = 3,00,000 ;  Bank Loan = 2,00,000

TO FIND: Capital

SOLUTION:

Sarath has started the business and has invested 5,00,000 in cash and 3,00,000 in stock and he has also taken a loan of 2,00,000.

Capital is the investment done by the businessmen to start a business

According to the accounting equation

Asset = Capital + Liability

Cash + Stock = Capital + Bank Loan

5,00,000 + 3,00,000 = Capital + 2,00,000

8,00,0000 = Capital + 2,00,000

Capital = 8,00,0000 - 2,00,000

Capital = 6,00,000

Capital invested in the business is 6,00,000.

PROJECT CODE  # SPJ3