Question

T. Singh’s Assets and Liabilities Machinery Rs 20,000 Cash in hand Rs 2,000 Land and buildings Rs 2,00,000 Bank loan Rs 50,000 Creditors Rs 5,000 Debtors Rs 10,000 What is T. Singh’s capital?

A) Rs 1,55,000

B) Rs 1,77,000

C) Rs 2,32,000

D) Rs 2,77,000

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Answer 1

T. Singh's capital is ₹ 1,77,000

explanation :

wkt,

assets = liabilities + capital

=> capital = asstes - liabilities

capital = (20,000+2,000+2,00,000+10,000) -(50,000+5,000)

=> capital = 2,32,000-55,000 = 1,77,000

option b is the right answer

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