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
On January 1, 2012, a machine was purchased for $197,100. The machine has an estimated salvage value of $13,140 and an estimated useful life of 5 years. The machine can operate for

Assume that $140,000 of Denham Springs school dostrict 8% bonds are sold on the bond issue date for $128,598 interest is payable semiannually, and the bonds mature in 15 years. The

Tlie subphylum is called Uniramia because of the presence of unbranched appendages. These animals have non-jointed mandibles, uubranched appendages without any palps. They have

What are the major features of JIT?

A small company employing around 25 people manufactures and sells anthropometric measuring equipment - equipment used mainly in hospitals to measure the height and other dimensions

Savage Distribution markets CDs of performing artist Little Sister.  At the beginning of October, Savage had in beginning inventory 1,200 Little Sister's CDs with a unit cost of $5

#ques Case Study Electron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for

Goal Definition and Communication - Behavioural Aspects of Standards Goal Definition The desired goals should be clearly defined to individuals, departments and the organ

1. The bank added another company's deposit to our account. This would be included on the bank reconciliation as a(n). a) addition to the balance per books. b) subtraction from the

Profit Analysis and Cost Volume or CVP Analysis CVP Analysis checks the relationship between profit, activity level and the cost. CVP Analysis assists in a broad range of p