Calculate the total assets (except cash) of the firm from the following:
- Creditors = ₹15,000
- Partner's loan = ₹10,000
- Partner's capital = ₹40,000
- Cash in hand = ₹5,000
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹60,000.
Total assets = Total liabilities + Capital
Total assets = Creditor(15,000) + Partner's loan (10,000) + Partner's capital (40,000)
Total assets = 65,000
Total assets except cash = 65,000 -5,000
= ₹60,000