Multiple choice

In a businees, the following assets and liabilities are shown as on 31st March, 2010: Cash at Bank Rs. 5,50,000, Furniture Rs. 4,20,000, Plant & Machinery Rs. 20,00,000, Debtors Rs. 1,00,000, Stock in Hand Rs. 1,50,000, Creditors Rs. 1,20,000 and Bank Loan Rs. 10,00,000. What is the difference of amount and where should it be transferred?

  1. Rs. 32,20,000, Capital A/c

  2. Rs. 21,00,000, Cash A/c

  3. Rs. 21,00,000, Capital A/c

  4. Rs. 11,20,000, Cash A/c
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Capital = Assets - Liabilities. i.e. Capital = 32,20,000 - 11,20,000.

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