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
The firm currently uses 50,000 workers to produce 200,000 units of output per day. The daily wage per worker is $80, and the price of the firm’s output is $25. The cost of other va

Overhead Cost Analysis and Classification Overhead costs may be analyzed into a) Which that may be directly identifiable along with a single cost center, as an  example of,

The Houston Chamber Orchestra presents a series of concerts throughout the year. Budgeted fixed costs total $300,000 for the concert season; variable costs are expected to average

fixed expenses are incurred equally in the two half year periods,calculate

Role of Cost Accounting in Organization Like part of their jobs, such cost accountants interpret results, and then report them to management and give analysis such assist deci

Behavioral Classification of Costs Definition Cost behavior refers to the change in costs as increase or may decrease like the output level changes that are like we risin

What is the easiest of calculate equivalents before producing a process account 2

The following data (in thousands of dollars) have been taken from the accounting records of Barn Burner Corporation for the just completed year.       Sales

under which type of asset the investment comes

Q. Issues to consider when making decisions? At activity level A it can be seen from diagram that sales revenue line intersects the total cost line specifying that this is the