1.

Class11(Commerce) Chapter:- Accounting equation.plz solve this quickly...

Answer»

8. A. OP capital + Profits during the YEAR - Drawings = CLOSING Capital.

THEREFORE Closing capital = 10K+5K-4k = 11k

Borrowings doesn't have any impact on capital.

B. Balance sheet formula is
Closing capital+Borrowings i.e Total liabilities = Total Assets

Closing capital = 15k+3k=18k
Add: Borrowings=2.5k
Total liabilities= 20.5k

Therefore total assets=20.5k



Discussion

No Comment Found

Related InterviewSolutions