Advertisements
Advertisements
Question
A firm has assets of ₹ 1,00,000 and the external liabilities of ₹ 60,000. Its capital would be ___________.
Options
₹ 1,60,000
₹ 60,000
₹ 1,00,000
₹ 40,000
Advertisements
Solution
A firm has assets of ₹ 1,00,000 and the external liabilities of ₹ 60,000. Its capital would be ₹ 40,000.
APPEARS IN
RELATED QUESTIONS
‘Cash withdrawn by the proprietor from the business for his personal use’ causes ____________.
The incorrect accounting equation is _____________.
Which one of the following is representative personal account?
Write any one transaction which decreases the assets and decreases the liabilities
Write a brief note on accounting equation approach of recording transactions.
Complete the accounting equation.
Assets = Capital + Liabilities
₹ 1,00,000 = ₹ 80,000 + ?
Complete the accounting equation.
Assets = Capital + Liabilities
₹ 2,00,000 = ? + ₹ 40,000
Complete the accounting equation.
Assets = Capital + Creditors
? = ₹ 1, 60,000 + ₹ 80,000
For the following transactions, show the effect on the accounting equation.
- Raj started business with cash - ₹ 40,000
- Opened bank account with a deposit of - ₹ 30,000
- Bought goods from Hari on credit for - ₹ 12,000
- Raj withdrew cash for personal use - ₹ 1,000
- Bought furniture by using debit card for - ₹ 10,000
- Sold goods to Murugan and cash received - ₹ 6,000
- Money withdrawn from bank for office use - ₹ 1,000
Create an accounting equation on the basis of the following transactions:
- Started business with cash ₹ 80,000 and goods ₹ 75,000
- Sold goods to Shanmugam on credit for ₹ 50,000
- Received cash from Shanmugam in full settlement ₹ 49,000
- Salary outstanding ₹ 3,000
- Goods costing ₹ 1,000 given as charity
- Insurance premium paid ₹ 3000
- Out of insurance premium paid, prepaid is ₹ 500
