Capital, Cost Accounting

Capital

We have seen previous in this section that the fundamental accounting equality states as:

Assets = liabilities + owners equity.

From the illustration of balance sheet we can simply establish this. Notice Ms. Naina's balance sheet as:

Total assets                           Rs. 1,00,00,000

Total liabilities                        Rs.   60,00,000

Owner's equity                       Rs.   40,00,000

We also identify that the owner's equity contains the contributed capital and the retained earnings of the firm. Thus, capital is that part of owner's equity that is contributed through the owners. If Ms. Naina were a particular proprietorship business, the owner's equity will be reflected directly as given below:

Capital                                         Rs 40,00,000

Whether 'M/s. Naina' were a partnership firm along with 4 partners as W, X, Y and Z all sharing similarly, the capital would be shown as:

Capital Partner W                                           Rs. 10,00,000

Partner X                                                        Rs. 10,00,000

Partner Y                                                        Rs. 10,00,000

Partner Z                                                        Rs. 10,00,000

Total                                                               Rs. 40,00,000

Posted Date: 4/4/2013 1:47:42 AM | Location : United States







Related Discussions:- Capital, Assignment Help, Ask Question on Capital, Get Answer, Expert's Help, Capital Discussions

Write discussion on Capital
Your posts are moderated
Related Questions
Calculation of Deductions - Wages Department A range of deductions are complete from gross earnings when computing the net payment because of the employee, that deductions may

Stores layout and location - Material Handling The layout of stores must ensure as a) For movement of material, ease of access out and in of stores b) The issue of peris

Question: Yamba Home Products is just beginning its fourth quarter, in which peak sales occur. The company has requested a $12,000, 90-day loan from its bank to help meet cash re

Methods of Labour Remuneration There Labour remuneration methods can be broadly classified into two factors as: i. Time rate or on the basis of the time spend in the factor

Cost Accounting Cost accounting has been defined via many accounting scholars in different forums. There is no single watertight definition of cost accounting, however the var

(a) Calculate the number of US imports with and without the tariff. (b) Calculate the dead weight loss of the tariff. (c) Calculate the loss in consumer surplus resulting fro

Effects of differential cost analysis in decision making

Accounting Treatment of Spoilage Costs 1) Normal Spoilage Costs: These costs are assigned to the good output utilizing two approaches as: (i) Omission Approach:  Under th

how marginal cost of a product is determined?

The costs that are fixed irrespective of manufacture are fixed costs. EX: Rent, Depreciation. Fix cost is those cost who not alter in any time whether the production done or not