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Formula Prob

The document contains a series of financial calculations related to business assets, capital, and profits for various scenarios. It includes examples of how to determine creditors, closing capital, and total assets based on given financial data. Each question provides a step-by-step solution to arrive at the required financial figures.

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0% found this document useful (0 votes)
5 views2 pages

Formula Prob

The document contains a series of financial calculations related to business assets, capital, and profits for various scenarios. It includes examples of how to determine creditors, closing capital, and total assets based on given financial data. Each question provides a step-by-step solution to arrive at the required financial figures.

Uploaded by

swenaacademics
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Q. 17. If total assets of a business are ₹ 1,30,000 and net worth is ₹ 80,000.

Calculate the
creditors.
Sol.
Assets = ₹ 1,30,000
Capital = ₹ 80,000
Creditors = ?
Creditors = Assets – capital = ₹ 1,30,000. - ₹ 80,000 = ₹50,000

Q. 18. 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.

Assets = Liabilities + closing capital


50,000 = 10,000 + X
Closing Capital = assets – liabilities. =50,000 – 10,000 = ₹40,000
Closing capital = opening capital + profit
Profit = closing capital – opening capital = 40,000 – 30,000 = ₹10,000

Q. 19. Calculate the total assets if:


(i) Opening 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.

Find out the value of the total assets of the business.

Profit = revenue – expenses = 50,000 -40,000 =10,000


Closing capital = Opening Capital + profit =40,000 +10,000 =50,000
Total assets = closing capital + creditors 50,000 + 25,000 = 75,000

20.
sol
a) opening capital =75,000
creditors =15,000
total assets = ?
Closing Capital = opening capital + profit – drawings =75,000 + 0 – 0 = 75,000
Total Assets = closing capital + creditors = 75,000 + 15,000 = 90,000

(b) After a period of one month, he came to know that he had suffered a loss of ₹ 1,700. He
withdrew ₹ 800 for his personal use. Find out his capital and assets of the business.
Sol.
Closing capital = opening capital – loss – drawings = 75,000 – 1,700 – 800 =72,500
Assets = Closing capital + creditors = 72,500 + 15,000 =87,500

Q. 21. Pranav started business on 1st April, 2021 with capital of ₹ 5,50,000. On 31st March,
2022 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, 2022.
Assets = liabilities + Closing Capital
10,75,000 = 2,92,500 + cl. Capital
Closing Capital = 10,75,000 – 2,92,500 = 7,82,500
Increase in closing capital = closing capital – opening capital = 7,82,500 -5,50,000 = ₹2,32,500

Q. 22. (a) Mohan started a business on 1st April, 2021 with a capital of ₹ 10,000 and borrowed
₹ 3,000 from a friend. He earned a profit of ₹ 5,000 during the year ended 31st March, 2022
and withdrew cash ₹ 4,000 for personal use. What is his capital on 31st March, 2022?

Closing capital = opening capital + profit – drawing = 10,000 + 5,000 – 4,000 = ₹11,000

(b) Mahesh started a business with a capital of ₹ 15,000 on 1st April, 2021. During the year,
he made a profit of ₹ 3,000. He owes ₹ 2,500 to suppliers of goods. What is the total of assets
in his business on 31st March, 2022?

Closing capital = opening capital + profit = 15,000 + 3,000 = 18,000


Assets = Capital + creditors = 18,000 + 2,500 = ₹20,500

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