Chapter 5 -
Accounting Equation
Question 17:
If the capital of a business is `3,00,000 and liabilities are ` 50,000, loss ` 70,000, calculate the total assets of the business.
Answer:
|
Total Assets |
= |
Capital – Loss + Liabilities |
|
|
= |
3,00,000 – 70,000 + 50,000 |
|
|
= |
` 2,80,000 |
Question 18:
If total assets of a business are ` 1,30,000 and net worth is ` 80,000, calculate the creditors.
Answer:
|
Creditors |
= |
Total Assets – Net worth |
|
|
= |
1,30,000 – 80,000 |
|
|
= |
` 50,000 |
Question 19:
A commenced his cloth business
on 1st April, 2021 with a capital of `30,000. On 31st March 2022, his assets were worth `50,000 and liabilities
of `10,000.
Find out his closing capital and profits earned during the year.
Answer:
|
Closing Capital |
= |
Assets – Liabilities |
|
|
= |
50,000 – 10,000 |
|
|
= |
` 40,000 |
|
Profit |
= |
Closing Capital – Opening Capital |
|
|
= |
40,000 – 30,000 |
|
|
= |
` 10,000 |
Question 20:
Calculate the total assets if:
(i) Capital is ` 40,000.
(ii) Creditors are `
25,000.
(iii) Revenue during the period is
` 50,000.
(iv) Expenses during the period are
` 40,000.
Answer:
|
Capital after Adjustment of revenue and expenses |
= |
Capital + Revenue – Expenses |
|
|
= |
40,000 + 50,000 – 40,000 = ` 50,000 |
|
Total Asset |
= |
Capital after adjustment + Creditors |
|
|
= |
50,000 + 25,000 |
|
|
= |
` 75,000 |
Ts Grewal Solution 2022-2023
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Chapter 5 – Accounting Equation
Question No. 1 To 4
Question No. 5 To 8
Question No. 9 To 12
Question No. 13 To 16
Question No. 17 To 20
Question No. 21 To 24
Question No. 25 To 26