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This section includes 7 InterviewSolutions, each offering curated multiple-choice questions to sharpen your Current Affairs knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Commission received by cheque 22000. |
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Answer» Assets = +22000 Capital = +22000 Explanation: Since we get cash it increases our assets and commission received is our income and income increases our profits..profits are included in capital. |
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| 2. |
He started his business by investing RS 8,00000 |
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Answer» Cash A/c ...........(Dr) 800000 To Capital A/c ................ 800000 (Being started business with cash) |
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| 3. |
If capital of a business is Rs.1,40,000 and liabilities are of Rs.80,000, calculate the total assets of the business. |
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Answer» Total Assets = Liabilities + capital = Rs.80,000 + Rs.1,40,000 =Rs. 2,20,000 |
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| 4. |
(a) A had a capital of Rs. 75,000 on 1st April, 2017. He had also goods amounting to Rs. 15,000 which he had purchased on credit and the payment had not been made. Find out the value of the total assets of the business.(b) After a period of one month, he came to know that he had suffered a loss of Rs. 1,700. He withdrew Rs. 800 for his personal use. Find out his capital and assets of the business. |
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Answer» a. Total Assets = Capital + Creditors = Rs. 75,000 + Rs. 15,000 = Rs. 90,000 |
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| 5. |
Calculate the total assets if:(i) Capital is Rs. 40,000.(ii) Creditors are Rs. 25,000.(iii) Revenue during the period is Rs. 50,000.(iv) Expenses during the period are Rs. 40,000. |
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Answer» Capital after Adjustments = Capital + Revenue – Expenses = Rs.40,000 + Rs.50,000 – Rs.40,000 = Rs.50,000 Total Assets = Capital after adjustment + Creditors = Rs.50,000 + Rs.25,000 = Rs.75,000 |
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| 6. |
Mohan started a business on 1st April, 2017 with a capital of Rs. 10,000 and borrowed Rs. 3,000 form a friend. He earned a profit of Rs. 5,000 during the year ended 31st March, 2018 and withdrew cash R 4,000 for private use. What is his capital on 31st March, 2018 ? |
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Answer» Mohan Started the Business a. Capital on 31st March 2018 = Capital on April 01,2017 + Profit – Drawings = Rs.10,000 + Rs.5,000 – Rs.4,000 = Rs.11,000 |
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| 7. |
If total assets of a business are Rs 1,30,000 and net worth is Rs. 80,000, calculate the creditors. |
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Answer» Creditors = Total Assets – Net worth = Rs.1,30,000 – Rs.80,000 = Rs.50,000 = Creditors is Rs.50,000. |
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| 8. |
If capital of a business is Rs. 1,40,000 and liabilities are of Rs.80,000, calculate the total assets of the business. |
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Answer» Total Assets = Liabilities + Capital = Rs.80,000 + Rs.1,40,000 = Rs.2,20,000 Total Assets of the business is Rs.2,20,000 |
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| 9. |
Mohan started a business on 1st April, 2017 with a capital of Rs. 25,000 and a loan of Rs. 12,500 borrowed from Shyam. During 2017-18 he had introduced additional capital of Rs. 12,500 and had withdrawn Rs. 7,500 for personal use. On 31st March, 2018 his assets were Rs. 75,000. Find out his capital as on 31st March, 2018 and profit made or loss incurred during the year 2017-18. |
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Answer» Mohan Started the Business Capital on 31st March 2018 = Assets – Loan from Shyam = Rs.75,000 – Rs.12,500 = Rs.62,500 Profit (or Loss) during the year 2017 – 18 = Capital on March 31, 2018 + Drawings – (Capital on April 01,2017 + Additional Capital) = Rs. 62,500 + Rs. 7,500 – (Rs. 25,000 + Rs. 12,500) = Rs.70,000 – Rs.37,500 = Rs.32,500 |
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| 10. |
On 31st March, 2018, the total assets and external liabilities were Rs. 2,00,000 and Rs. 6,000 respectively. During the year, the proprietor had introduced capital of Rs. 20,000 and withdrawn Rs. 12,000 for personal use. He made a profit of Rs. 20,000 during the year. Calculate the capital as on 1st April, 2017. |
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Answer» Capital on 31st March 2018 = Total Assets – External Liabilities = Rs. 2,00,000 – Rs. 6,000 = Rs. 1,94,000 Capital on 01st April 2017 = Capital on March 31, 2018 – Additional Capital + Drawings – Profit = Rs. 1,94,000 – Rs. 20,000 + Rs. 12,000 – Rs. 20,000 = Rs. 1,66,000 |
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| 11. |
On 31st March, 2015, the total assets and external liabilities were Rs.2,00,000 and Rs.6,000 respectively. During the year, the proprietor had introduced capital of Rs.20,000 and withdrawn Rs.12,000 for personal use. He made a profit of Rs.20,000 during the year. Calculate the capital as on 1st April, 2014. |
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Answer» Capital on March 31,= Total Assets - External Liabilities = Rs.2,00,000 - Rs.6000 =Rs.1,94,000 Capital on April 01,2014 = Capital on March 31,2015- Additional Capital + Drawings- profit = Rs.1,94,000 - Rs.20.000+Rs.12,000 -Rs.20.000 = Rs.1,66,000 |
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| 12. |
If the capital of a business is Rs. 3,00,000 and liabilities are Rs. 50,000, loss Rs. 70,000, calculate the total assets of the business. |
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Answer» Total Assets = Capital – Loss + Liabilities = Rs.3,00,000 – Rs.70,000 + Rs.50,000 = Rs.2,80,000 Total Assets of the business is Rs.2,80,000 |
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| 13. |
A commenced his cloth business on 1st April, 2017 with a capital of Rs. 30,000. On 31st March 2018, his assets were worth Rs. 50,000 and liabilities of Rs. 10,000. Find out his closing capital and profits earned during the year. |
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Answer» Closing Capital = Assets – Liabilities = Rs.50,000 – Rs.10,000 = Rs.40,000 = Rs.40,000 – Rs.30,000 = Rs.10,000 |
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| 14. |
If the capital of a business is Rs.3,00,000 and liabilities are Rs.50,000, loss 70,000, calculate the total assets of the business. |
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Answer» Total assets = capital - Loss + Liabilities = Rs.3,00,000 - Rs.70,000 + Rs. 50,000 = Rs.2,80,000 |
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| 15. |
Mahesh started a business with a capital of Rs. 15,000 on 1st April, 2017. During the year, he made a profit of Rs. 3,000. He owes Rs. 2,500 to suppliers of goods. What is the total of assets in his business on 31st March, 2018 ? |
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Answer» Mahesh Started the Business Total Assets on 31st March 2018 = Capital on April 01, 2017 + Profit + Creditors |
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| 16. |
If total assets of a business are Rs.1,30,000 and net worth is Rs.80,000, calculate the creditors.[Hint: Net worth = Assets – Liabilities] |
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Answer» Creditors = Total assets - Net worth = Rs.1,30,000 - Rs.80,000 = Rs.50,000 |
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| 17. |
A commenced his cloth business on 1 April 2014 with a capital of Rs.30,000. On 31 March 2015, his assets were worth Rs.50,000 and liabilities of Rs.10,000. Find out his closing capital and profits earned during the year. |
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Answer» Closing capital = Assets - Liabilities = Rs.50,000 - Rs.10,000 = Rs.40,000 |
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