Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

Find out the capital employed from the following information:
Total assets = ₹2300000
Liabilities = ₹590000
Assets include non-trade investments of ₹100000 and liabilities include reserves of ₹30000.

Options:

₹1640000

₹1740000

₹1840000

₹1610000

Correct Answer:

₹1640000

Explanation:

Capital employed = (Assest - nontrade Investment) - (liabilities- reserves)
                          = (2300000-100000) - ( 590000-30000)
                          = 2200000-560000
                          = ₹1640000