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Question 3 Chapter 3 – Unimax Publications of Class 11
3. Calculate Total equity if:
Owner’s equity in the beginning is Rs. 1,20,000 equity of creditors at the end is Rs. 1,05,000 Revenue during the period is Rs. 1,35,000. Expenses during the same period are Rs. 1,27,500.
Also calculate amount of owner’s equity at the end.
The solution of Question 3 Chapter 3 – Unimax Publications of Class 11
| Total Equity | =Owner’s Equity + Creditor’s equity |
| = (Opening Owner’s equity + Revenue – Expenses) + Creditors equity | |
| =(1,20,000+ 1,35,000-1,27,500)+1,05,000 | |
| = 1,27,500+1,05,000 | |
| = 2,32,500 |
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