Complete the table by calculating missing figures for Assets, Liabilities, and Capital for each business, then verify the accounting equation.

Economics
Complete the table by calculating missing figures for Assets, Liabilities, and Capital for each business, then verify the accounting equation.

ScanSolve AI Answer

Answer

Working Capital: A=₹1,00,000; B=₹1,50,000; C=₹2,00,000; D=₹3,50,000; E=₹4,00,000

Step 1: Verify the accounting equation for each business

Accounting equation:
CurrentAssets=CurrentLiabilities+CapitalEmployedCurrent Assets = Current Liabilities + Capital Employed

Capital Employed = Current Assets −- Current Liabilities

Calculations in table (all amounts in ₹):

BusinessCurrentAssetsCurrentLiabilitiesCapitalEmployedVerificationA1,50,00050,0001,50,000−50,000=1,00,0001,50,000=50,000+1,00,000✓B2,00,00050,0002,00,000−50,000=1,50,0002,00,000=50,000+1,50,000✓C3,00,0001,00,0003,00,000−1,00,000=2,00,0003,00,000=1,00,000+2,00,000✓D5,00,0001,50,0005,00,000−1,50,000=3,50,0005,00,000=1,50,000+3,50,000✓E6,00,0002,00,0006,00,000−2,00,000=4,00,0006,00,000=2,00,000+4,00,000✓\begin{array}{|c|c|c|c|l|} \hline Business & Current Assets & Current Liabilities & Capital Employed & Verification \\ \hline A & 1,50,000 & 50,000 & 1,50,000 - 50,000 = 1,00,000 & 1,50,000 = 50,000 + 1,00,000 \checkmark \\ \hline B & 2,00,000 & 50,000 & 2,00,000 - 50,000 = 1,50,000 & 2,00,000 = 50,000 + 1,50,000 \checkmark \\ \hline C & 3,00,000 & 1,00,000 & 3,00,000 - 1,00,000 = 2,00,000 & 3,00,000 = 1,00,000 + 2,00,000 \checkmark \\ \hline D & 5,00,000 & 1,50,000 & 5,00,000 - 1,50,000 = 3,50,000 & 5,00,000 = 1,50,000 + 3,50,000 \checkmark \\ \hline E & 6,00,000 & 2,00,000 & 6,00,000 - 2,00,000 = 4,00,000 & 6,00,000 = 2,00,000 + 4,00,000 \checkmark \\ \hline \end{array}

The equation holds for all businesses.

Step 2: Calculate Working Capital for each business

Formula:
WorkingCapital=CurrentAssets−CurrentLiabilitiesWorking Capital = Current Assets - Current Liabilities

Calculations (all amounts in ₹):

Business A:
1,50,000−50,000=1,00,0001,50,000 - 50,000 = 1,00,000

Business B:
2,00,000−50,000=1,50,0002,00,000 - 50,000 = 1,50,000

Business C:
3,00,000−1,00,000=2,00,0003,00,000 - 1,00,000 = 2,00,000

Business D:
5,00,000−1,50,000=3,50,0005,00,000 - 1,50,000 = 3,50,000

Business E:
6,00,000−2,00,000=4,00,0006,00,000 - 2,00,000 = 4,00,000

Summary table:

BusinessWorkingCapital(₹)A1,00,000B1,50,000C2,00,000D3,50,000E∗∗4,00,000∗∗\begin{array}{|c|c|} \hline Business & Working Capital (₹) \\ \hline A & 1,00,000 \\ B & 1,50,000 \\ C & 2,00,000 \\ D & 3,50,000 \\ E & **4,00,000** \\ \hline \end{array}

Working Capital: A=₹1,00,000; B=₹1,50,000; C=₹2,00,000; D=₹3,50,000; E=₹4,00,000

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Verify the accounting equation for each business Accounting equation: Current Assets = Current Liabilities + Capital Employed Capital Employed = Current Assets - Current Liabilities Calculations in table (all amounts in ₹): |c|c|c|c|l| Business & Curr…

Complete the table by calculating missing figures for Assets, Liabilities, and Capital for each business, then verify the accounting equation.
Economics

This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.

ScanSolve AI Answer
Step 1: Verify the accounting equation for each business Accounting equation: Current Assets = Current Liabilities + Capital Employed Capital Employed = Current Assets - Current Liabilities Calculations in table (all amounts in ₹): |c|c|c|c|l| Business & Current Assets & Current Liabilities & Capital Employed & Verification \\ A & 1,50,000 & 50,000 & 1,50,000 - 50,000 = 1,00,000 & 1,50,000 = 50,000 + 1,00,000 \\ B & 2,00,000 & 50,000 & 2,00,000 - 50,000 = 1,50,000 & 2,00,000 = 50,000 + 1,50,000 \\ C & 3,00,000 & 1,00,000 & 3,00,000 - 1,00,000 = 2,00,000 & 3,00,000 = 1,00,000 + 2,00,000 \\ D & 5,00,000 & 1,50,000 & 5,00,000 - 1,50,000 = 3,50,000 & 5,00,000 = 1,50,000 + 3,50,000 \\ E & 6,00,000 & 2,00,000 & 6,00,000 - 2,00,000 = 4,00,000 & 6,00,000 = 2,00,000 + 4,00,000 \\ The equation holds for all businesses. Step 2: Calculate Working Capital for each business Formula: Working Capital = Current Assets - Current Liabilities Calculations (all amounts in ₹): Business A: 1,50,000 - 50,000 = 1,00,000 Business B: 2,00,000 - 50,000 = 1,50,000 Business C: 3,00,000 - 1,00,000 = 2,00,000 Business D: 5,00,000 - 1,50,000 = 3,50,000 Business E: 6,00,000 - 2,00,000 = 4,00,000 Summary table: |c|c| Business & Working Capital (₹) \\ A & 1,00,000 \\ B & 1,50,000 \\ C & 2,00,000 \\ D & 3,50,000 \\ E & 4,00,000 \\ Working Capital: A=₹1,00,000; B=₹1,50,000; C=₹2,00,000; D=₹3,50,000; E=₹4,00,000