Question 25:
Calculate the amount of External Equities as on 31st
March, 2024 in the following cases:
(i) On 31st March, 2024, total assets and capital were `15,00,000 and `10,50,000 respectively.
(ii) On 1st April, 2023, Mukesh started business with a capital of `3,00,000 and a loan of `3,00,000 borrowed from a friend. During the year, he earned a profit of `1,50,000. On 31st March, 2024, the total assets were `15,00,000.
(iii) On 1st April, 2023, Ramesh started business with a capital of ` 3,00,000 and a loan of ` 3,00,000 borrowed from a fixed. During the year, he earned a profit of ` 1,50,000, introduced an additional capital of ` 1,80,000 and had withdrawn `90,000 for his personal use. On 31st March, 2024 total assets were `15,00,000.
Answer:
(i)
Total assets =`15,00,000
Capital = `10,50,000
External Equities(External Liabilities) = Assets – Capital
External Equities(External Liabilities) = 15,00,000 – 10,50,000
External Equities(External Liabilities) = 4,50,000
(ii)
On 1st April, 2023
Total assets = `15,00,000
Capital = `10,50,000
(iii)
Opening Capital=3,00,000
Opening External liabilities =3,00,000
Total Closing assets=15,00,000
Closing Capital = 3,00,000 + 1,50,000 (Profit) +1,80,000 (Additional Capital) - 90,000 (Drawings) = 5,40,000
Closing External liabilities (External equity) =Total Closing assets -Closing Capital
Closing External liabilities (External equity) =15,00,000 –5,40,000
Closing External
liabilities (External equity) = 9,60,000
Question 26:
Pravav started business on 1st April, 2023 with capital of `5,50,000. On 31st March, 2024, his total assets were `10,75,000 and liabilities were `2,92,500. Calculate the amount by which his capital has increased as on 31st March, 2024.
Answer:
Capital on 1st April, 2023 = `5,50,000
Capital on 31st March, 2024
= `10,75,000-`2,92,500=7,82,500
Amount by which his capital has increased as on 31st March, 2024 =7,82,500-`5,50,000= 2,32,500 (Profit)