Advertisements
Advertisements
Question
Non-current Assets of a firm are ₹ 26,00,000, Current Assets are ₹ 9,00,000 and Shareholders’ Funds are ₹ 21,50,000. Total debts of the firm will be ______.
Options
₹ 43,50,000
₹ 13,50,000
₹ 21,50,000
₹ 38,50,000
Advertisements
Solution
Non-current Assets of a firm are ₹ 26,00,000, Current Assets are ₹ 9,00,000, and Shareholders’ Funds are ₹ 21,50,000. Total debts of the firm will be ₹ 13,50,000.
Explanation:
Given:
Non-current Assets = ₹ 26,00,000
Current Assets = ₹ 9,00,000
Shareholders’ Funds = ₹ 21,50,000
Total Assets = Non-current Assets + Current Assets
= 26,00,000 + 9,00,000
= ₹ 35,00,000
We know that:
Total Assets = Shareholders' Funds + Total Debts
Therefore:
$$\begin{aligned} \text{Total Debts} &= \text{Total Assets} - \text{Shareholders' Funds} \\ &= 35,00,000 - 21,50,000 \\ &= {₹\ 13,50,000} \end{aligned}$$
