Question
From the following information, calculate the total
assets of the business: Capital: ₹4,00,000 Creditors: ₹3,00,000 Revenue earned during the period: ₹7,50,000 Expenses incurred during the period: ₹2,00,000 Value of unsold stock: ₹2,00,000Solution
Total assets are calculated using the formula: Total Assets = Liabilities (Creditors) + Capital + Profit Here, Profit = Revenue earned - Expenses incurred = ₹7,50,000 - ₹2,00,000 = ₹5,50,000. So, Total Assets = ₹3,00,000 + ₹4,00,000 + ₹5,50,000 = ₹12,50,000 This includes the closing stock of ₹2,00,000.
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