- A had a capital of ₹ 75,000 on 1st April, 2018. He had also goods amounting to ₹ 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.
- 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.
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- Total Assets = Capital + Creditors for purchase of Goods
= ₹ 90,000
- Capital at the end = Capital - Loss - Drawings
= ₹ 72,500
Assets = Capital at the end + Creditors for purchase of Goods
= 72,500 + 15,000
= ₹ 87,500
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