could anyone answerme this?
given opening capital=500000, profits during year=100000
what is the average capital?
could anyone answerme this?
given opening capital=500000, profits during year=100000
what is the average capital?
MANOJ CHANDRA SHARMA
(JOB)
(59 Points)
Replied 10 June 2010
first it is assumed that in capital profit figure is already added
therefore average capital=closing capital-1/2 of profit
= 500000-50000
= 450000
am i right ?
shakuntala chhangani
(FCA Course co-ordinator WIRC coaching centre)
(2525 Points)
Replied 10 June 2010
my dear, closing capital = opening capital + profits
i.e.5,00,000 + 1,00,000 = 6,00,000
Now, avg. capital = closing capital - 1/2 of profits
=6,00,000 - 1/2* 1,00,000
= 6,00,000 - 50,000 = 5,50,000
shakuntala chhangani
(FCA Course co-ordinator WIRC coaching centre)
(2525 Points)
Replied 14 June 2010
Friends, in continuation, u can ask me any CPT accounts question for ur June 2010 exams. I will try to give a prompt reply
Regards, CA Shakuntala Chhangani
CAclubindia
