Question

X starts business with cash of Rs. 10,00,000 and also borrows
money from his friend Y Rs. 5,00,000. What is the capital of the
business?

Answer 1

Answer:

If money borrowed from his friend for the purpose of investing in the business then the capital will be Rs.15,00,000,

If the borrowed money is not for the purpose of investing in business the capital amount will be Rs. 10,00,000