Calculate capital as on 01Jan 2001 in each of the following cases:Tanish ! We can calculate owner's capital with accounting equation formula.
a) On 31.12.2001 the total assets and external liability were Rs 30000 and Rs 900 respectively. During the proprietor earned Rs 3000
b) If in the preceding case the proprietor had introduced additional capital Rs 3000 and had withdrawn Rs 1800 for personal purpose.
Tanish from India
Total Assets = Total Liabilities
Assets = External Liabilities + Net Owner's Capital + Revenue - Losses
Assets = External Liabilities + Owner's capital + Fresh Capital - Withdraw of Capital + Revenue - Losses
30000 = 900 + X + 3000 - 1800 + 3000
30000 = X + 5100
30000 - 5100 = X
X = 24900
Owner's Capital = Rs. 24900