Question
X has the following assets and liabilities as on 31st
March, 2024. Determine his capital: Cash: ₹25,000 Bank: ₹47,500 Debtors: ₹18,000 Creditors: ₹22,000 Plant and Machinery: ₹80,000 Building: ₹2,00,000 Furniture: ₹24,000 Bills Receivable: ₹56,500 Bills Payable: ₹23,500Solution
Capital is calculated using the formula: Capital = Assets - Liabilities Assets = Cash + Bank + Debtors + Plant and Machinery + Building + Furniture + Bills Receivable Liabilities = Creditors + Bills Payable Capital = (₹25,000 + ₹47,500 + ₹18,000 + ₹80,000 + ₹2,00,000 + ₹24,000 + ₹56,500) - (₹22,000 + ₹23,500) = ₹4,51,000 - ₹45,500 = ₹4,05,500
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