Calculate Capital employed of the partnership firm if following information is given:
Capitals of partners - ₹200000
Reserves- ₹90000
Sundry creditors- ₹90000
Outstanding expenses - ₹10000
Deferred revenue expenditure- ₹10000
Existing goodwill - ₹30000
Answer & explanation
Correct answer: option 1
Capital employed = Capitals + reserves- existing goodwill- fictitious assets
= 200000+ 90000-30000-10000 = ₹250000