alleryStart learning →A club's assets total Rs 1,30,000 and its liabilities, being subscription in advance Rs 5,000 and a loan of Rs 10,000, total Rs 15,000. Its capital fund is:
ARs 1,45,000
BRs 1,15,000
CRs 1,30,000
DRs 1,25,000
Answer & Solution
Correct answer: B. Rs 1,15,000
1. Where the capital fund is not given, it is found as the balancing figure of the balance sheet.
2. The textbook prints the relationship as capital fund equals assets at the beginning minus liabilities at the beginning.
3. Total assets here are Rs 1,30,000.
4. Total liabilities are Rs 5,000 of subscription received in advance plus the Rs 10,000 loan, which is Rs 15,000.
5. The capital fund is therefore Rs 1,30,000 minus Rs 15,000, that is Rs 1,15,000.
6. Option A adds the liabilities instead of deducting them, which is the standard trap on a balancing-figure question.
_Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 2 "Accounts of Not-for-Profit Organisation", Illustration 16_
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