Capital, Cost Accounting

Assignment Help:

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


Related Discussions:- Capital

Cost components, Cost Components Companies which manufacture a product ...

Cost Components Companies which manufacture a product face an elaborated set of accounting issues. Additionally the usual accounting matters related with selling and administra

Expenditure for the base period and the current period, 1. The table below ...

1. The table below gives data for Southland where there are three consumption goods: bananas, coconuts and grapes. Goods Quantity in base period basket

Calculate the nominal interest rate, A 1- year Canadian bond with a face va...

A 1- year Canadian bond with a face value of 5000 can be purchased at 4800. a) Calculate the nominal interest rate in Canada. b) If the Canadian dollar is expected to depreci

Closing a factory , i have a factory and 87 employees . we have a closure p...

i have a factory and 87 employees . we have a closure plan in 12 months. what would be the charges?

Budgets, how can a poorly controlled budget cause problesm for a business?

how can a poorly controlled budget cause problesm for a business?

Taxable transfers, Greta Grantor made $1 million of taxable gifts in 2009, ...

Greta Grantor made $1 million of taxable gifts in 2009, the only taxable gifts she made prior to this year.  Greta was married on January 2nd of this year to Gerard Gold digger. De

Long-term liabilities, Long-Term Liabilities: These are usually for mo...

Long-Term Liabilities: These are usually for more than one year. They cover almost all the outsider's liabilities not comprised in the current liabilities and provisions. Such

Product costing methods, What are the strengths and weaknesses of the vario...

What are the strengths and weaknesses of the various costing methods and which would you recommend for a manufacturing enterpris? 2000word assay plus appendix

MATERIALCOSTING, what are the material management questions

what are the material management questions

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd