T.S. Grewal Class 11 Chapter 5 Q.20 - Find Total Assets (Gurman, Loss and Drawings)

Question 20

(a) Gurman had a capital of ₹75,000 on 1st April, 2024. He had also goods amounting to ₹15,000 which he had purchased on credit and the payment had not been made. Find out the value of the total assets of the business.

(b) He incurred a loss of ₹1,700. He withdrew ₹800 for his personal use. Find out his capital and assets of the business.

Solution

Part (a): Total Assets

Using the Accounting Equation: Assets = Capital + Liabilities (Creditors)

Total Assets	= Capital + Creditors for purchase of Goods
	= ₹75,000 + ₹15,000
	= ₹90,000

Part (b): Capital and Assets after Loss and Drawings

Capital at the end = Opening Capital − Loss − Drawings

Capital at the end	= ₹75,000 − ₹1,700 − ₹800
	= ₹72,500

Assets = Capital at the end + Creditors

Assets	= ₹72,500 + ₹15,000
	= ₹87,500

Closing Capital = ₹72,500 | Total Assets = ₹87,500