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In the beginning of the accounting year ,a club has Rs.18000 assest;Rs5000 liabilities; 1800debit balance of the income and expenditure A/c. The opening capital fund is?
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In the beginning of the accounting year ,a club has Rs.18000 assest;Rs...
Calculation of Opening Capital Fund of a Club
To calculate the opening capital fund of a club, we need to consider the following details:
Assets: Rs. 18000
Liabilities: Rs. 5000
Debit balance of Income and Expenditure A/c: Rs. 1800
Determination of Capital Fund
The opening capital fund can be determined by using the following formula:
Capital Fund = Assets – Liabilities + Debit Balance of Income and Expenditure A/c
Substituting the given values, we get:
Capital Fund = 18000 – 5000 + 1800
Capital Fund = Rs. 14500
Therefore, the opening capital fund of the club is Rs. 14500.
Explanation:
The opening capital fund of a club is the amount of money invested by the members or the accumulated profits of the club. In this case, the club has assets worth Rs. 18000 and liabilities worth Rs. 5000. The difference between the two is Rs. 13000. However, there is a debit balance of Rs. 1800 in the Income and Expenditure A/c. This means that expenses for the previous year were more than the income, resulting in a loss. Therefore, we need to subtract this loss from the difference between assets and liabilities to determine the opening capital fund. After subtracting the loss, we get Rs. 14500 as the opening capital fund of the club. This amount can be used for future expenses or investments by the club.
To calculate the opening capital fund of a club, we need to consider the following details:
Assets: Rs. 18000
Liabilities: Rs. 5000
Debit balance of Income and Expenditure A/c: Rs. 1800
Determination of Capital Fund
The opening capital fund can be determined by using the following formula:
Capital Fund = Assets – Liabilities + Debit Balance of Income and Expenditure A/c
Substituting the given values, we get:
Capital Fund = 18000 – 5000 + 1800
Capital Fund = Rs. 14500
Therefore, the opening capital fund of the club is Rs. 14500.
Explanation:
The opening capital fund of a club is the amount of money invested by the members or the accumulated profits of the club. In this case, the club has assets worth Rs. 18000 and liabilities worth Rs. 5000. The difference between the two is Rs. 13000. However, there is a debit balance of Rs. 1800 in the Income and Expenditure A/c. This means that expenses for the previous year were more than the income, resulting in a loss. Therefore, we need to subtract this loss from the difference between assets and liabilities to determine the opening capital fund. After subtracting the loss, we get Rs. 14500 as the opening capital fund of the club. This amount can be used for future expenses or investments by the club.
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In the beginning of the accounting year ,a club has Rs.18000 assest;Rs...
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In the beginning of the accounting year ,a club has Rs.18000 assest;Rs5000 liabilities; 1800debit balance of the income and expenditure A/c. The opening capital fund is?
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In the beginning of the accounting year ,a club has Rs.18000 assest;Rs5000 liabilities; 1800debit balance of the income and expenditure A/c. The opening capital fund is? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about In the beginning of the accounting year ,a club has Rs.18000 assest;Rs5000 liabilities; 1800debit balance of the income and expenditure A/c. The opening capital fund is? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the beginning of the accounting year ,a club has Rs.18000 assest;Rs5000 liabilities; 1800debit balance of the income and expenditure A/c. The opening capital fund is?.
In the beginning of the accounting year ,a club has Rs.18000 assest;Rs5000 liabilities; 1800debit balance of the income and expenditure A/c. The opening capital fund is? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about In the beginning of the accounting year ,a club has Rs.18000 assest;Rs5000 liabilities; 1800debit balance of the income and expenditure A/c. The opening capital fund is? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the beginning of the accounting year ,a club has Rs.18000 assest;Rs5000 liabilities; 1800debit balance of the income and expenditure A/c. The opening capital fund is?.
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