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Vivek started business on 1st April, 2016 with capital of Rs. 3,00,000. On 31st March, 2017, his total assets amounted to Rs. 5,40,000 and liabilities to Rs. 1,20,000 find out how much has his capital increase in the year.?
Most Upvoted Answer
Vivek started business on 1st April, 2016 with capital of Rs. 3,00,000...
Calculation of Increase in Capital
- Starting Capital on 1st April, 2016 = Rs. 3,00,000
- Total Assets on 31st March, 2017 = Rs. 5,40,000
- Total Liabilities on 31st March, 2017 = Rs. 1,20,000
Calculation of Total Capital on 31st March, 2017
- Assets = Liabilities + Capital
- Rs. 5,40,000 = Rs. 1,20,000 + Capital
- Capital = Rs. 4,20,000
Calculation of Increase in Capital
- Starting Capital = Rs. 3,00,000
- Ending Capital = Rs. 4,20,000
- Increase in Capital = Ending Capital - Starting Capital
- Increase in Capital = Rs. 1,20,000
Explanation
The given question requires us to calculate the increase in capital of Vivek's business in a year. To solve this problem, we need to calculate the total capital of his business on 31st March, 2017, which can be found by adding the liabilities and the capital on that date. The assets on 31st March, 2017 are given so we can use the basic accounting equation, Assets = Liabilities + Capital, to find the capital.
Once we have found the total capital on 31st March, 2017, we can subtract the starting capital on 1st April, 2016 to find the increase in capital. The increase in capital represents the amount by which Vivek's business has grown during the year.
In this case, the total capital on 31st March, 2017 is Rs. 4,20,000 and the starting capital was Rs. 3,00,000, so the increase in capital is Rs. 1,20,000. This means that Vivek's business has grown by Rs. 1,20,000 during the year.
Community Answer
Vivek started business on 1st April, 2016 with capital of Rs. 3,00,000...
Assets= liabilities+ capital
540000 = 120000+ capital
total capital =420000
the increase in capital= 420000-300000
=120000
540000 = 120000+ capital
total capital =420000
the increase in capital= 420000-300000
=120000
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Vivek started business on 1st April, 2016 with capital of Rs. 3,00,000. On 31st March, 2017, his total assets amounted to Rs. 5,40,000 and liabilities to Rs. 1,20,000 find out how much has his capital increase in the year.?
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Vivek started business on 1st April, 2016 with capital of Rs. 3,00,000. On 31st March, 2017, his total assets amounted to Rs. 5,40,000 and liabilities to Rs. 1,20,000 find out how much has his capital increase in the year.? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about Vivek started business on 1st April, 2016 with capital of Rs. 3,00,000. On 31st March, 2017, his total assets amounted to Rs. 5,40,000 and liabilities to Rs. 1,20,000 find out how much has his capital increase in the year.? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Vivek started business on 1st April, 2016 with capital of Rs. 3,00,000. On 31st March, 2017, his total assets amounted to Rs. 5,40,000 and liabilities to Rs. 1,20,000 find out how much has his capital increase in the year.?.
Vivek started business on 1st April, 2016 with capital of Rs. 3,00,000. On 31st March, 2017, his total assets amounted to Rs. 5,40,000 and liabilities to Rs. 1,20,000 find out how much has his capital increase in the year.? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about Vivek started business on 1st April, 2016 with capital of Rs. 3,00,000. On 31st March, 2017, his total assets amounted to Rs. 5,40,000 and liabilities to Rs. 1,20,000 find out how much has his capital increase in the year.? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Vivek started business on 1st April, 2016 with capital of Rs. 3,00,000. On 31st March, 2017, his total assets amounted to Rs. 5,40,000 and liabilities to Rs. 1,20,000 find out how much has his capital increase in the year.?.
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