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      Question

        Authorised capital of a company is Rs.5 lakh and 40%

      of it is paid up. What would be the tangible net-worth of the company if it reported Loss during the year is at Rs.50,000 and has accumulated loss carried from last year  of Rs.2 lakh.
      A Rs.2,00,000 Correct Answer Incorrect Answer
      B Rs.2,50,000 Correct Answer Incorrect Answer
      C Rs. (-)2,50,000 Correct Answer Incorrect Answer
      D Rs.(−)50,000 Correct Answer Incorrect Answer
      E Rs.7,50,000 Correct Answer Incorrect Answer

      Solution

      The equity capital of the company = 40% of authorised capital = 40% of Rs.5 lakh = Rs.2,00,000 Total reserves at the end of the year = accumulated loss + current year loss = Rs.2 lakh + Rs.50000 = (-)2,50,000 Tangible net worth = equity + reserves = 2,00,000 + (-)2,50,000 = Rs.(-)50,000

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