Authorised capital of a company is Rs.5 lac, 40% of it is paid up. Loss incurred during the year

Question:

106. Authorised capital of a company is Rs.5 lac, 40% of it is paid up. Loss incurred during the year is Rs.50,000. Accumulated loss carried from last year is Rs.2 lac. The company has a Tangible Net Worth ofa. Nilb. Rs.2.50 lacc. (-)Rs.50,000d. Rs.1 lac.107. Proprietary ratio is calculated bya. Total assets/Total outside liabilityb. Total outside liability/Total tangible assetsc. Fixed assets/Long term source of fundd. Proprietors’’ Funds/Total108. Current ratio of a concern is 1,its net working capital will bea) Positiveb) Negativec) Nild) None of the above

Answer

106. Option c. (-)Rs.50,000

Paid-up capital = 500000*40% = 200000

Total Loss = 200000 + 50000 = 250000

Tangible net worth = -50000

107. Option d. Proprietor’s fund/Total tangible assets

108. Option c. Nil

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