Calculate total assets if:
Capital is ₹ 2,00,000; Creditors ₹ 50,000; Revenue during the year ₹ 5,00,000; and Expenses during the year ₹ 4,00,000.
Capital is ₹ 2,00,000; Creditors ₹ 50,000; Revenue during the year ₹ 5,00,000; and Expenses during the year ₹ 4,00,000.
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Given
Capital = 2,00,000 (liability)
Creditors = 50,000 (liability)
Revenue = 5,00,000 (asset)
and expense = 4,00,000 (liabilty)
We know
Closing capital = revenue + capital - expenes
300000 = 500000 + 200000 - 400000
Now,
Total assets = liabilities + closing capital
= 50000 + 300000 = 350000
Capital = 2,00,000 (liability)
Creditors = 50,000 (liability)
Revenue = 5,00,000 (asset)
and expense = 4,00,000 (liabilty)
We know
Closing capital = revenue + capital - expenes
300000 = 500000 + 200000 - 400000
Now,
Total assets = liabilities + closing capital
= 50000 + 300000 = 350000
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