# Class-11th | Chapter-2 | Accounting Equation | Question No. 21 to 25 | Ts grewal solution | 2020-21

#### Question 21:

If capital of a business is  ` 1,40,000 and liabilities are of  ` 80,000, calculate the total assets of the business.

 Total Assets = Liabilities + Capital = 80,000 + 1,40,000 = ` 2,20,000

#### Question 22:

Calculate the total assets if:
(i) 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.

 Capital after Adjustment of revenue and expenses = Capital + Revenue – Expenses = 40,000 + 50,000 – 40,000 =  ` 50,000

 Total Asset = Capital after adjustment + Creditors = 50,000 + 25,000 = ` 75,000

#### Question 23:

(a) 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.

(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.

 (a) Total Assets = Capital + Creditors for purchase of Goods = 75,000 + 15,000 = ` 90,000 (b) Capital at the end = Capital − Loss − Drawings = 75,000 − 1,700 − 800 = ` 72,500 Assets = Capital at the end + Creditors for purchase of Goods = 72,500 + 15,000 = ` 87,500

#### Question 24:

(a) Mohan started a business on 1st April, 2018 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, 2019 and withdrew cash  ` 4,000 for personal use. What is his capital on 31st March, 2019?

(b) Mahesh started a business with a capital of  ` 15,000 on 1st April, 2018. 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, 2019?

(a) Capital on March 31, 2019 = Capital on April 01, 2018 + Profit − Drawings

= 10,000 + 5,000 − 4,000 =  ` 11,000

(b) Total Assets on March 31, 2019 =  Capital on April 01, 2018 + Profit + Creditors

= 15,000 + 3,000 + 2,500 =  ` 20,500

#### Question 25:

Mohan started a business on 1st April, 2018 with a capital of  ` 25,000 and a loan of  ` 12,500 borrowed from Shyam. During 2018-19 he had introduced additional capital of   ` 12,500 and had withdrawn  ` 7,500 for personal use. On 31st March, 2019 his assets were  ` 75,000. Find out his capital as on 31st March, 2019 and profit made or loss incurred during the year 2018-19.

Capital on March 31, 2019 = Assets − Loan from Shyam

= 75,000 − 12,500 =  ` 62,500

Profit (or Loss) during the year 2018-19 = Capital on March 31, 2019+ Drawings − (Additional Capital + Capital on April 01, 2018)

= 62,500 + 7,500 − (12,500 + 25,000)

= 70,000 − 37,500 =  ` 32,500