If total assets are ₹5,00,000 and outside liabilities are ₹2,00,000, what is the capital? MCQ with Answer and Explanation

Question
If total assets are ₹5,00,000 and outside liabilities are ₹2,00,000, what is the capital?
A. ₹5,00,000
B. ₹3,00,000
C. ₹7,00,000
D. ₹2,00,000
Answer: Option B
Solution (By JKSSB Mock Tests)
Capital = Assets - Liabilities. Therefore, ₹5,00,000 - ₹2,00,000 = ₹3,00,000.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following would cause a difference in Cash Book and Pass Book?
A. Direct deposit by a customer into bank
B. Bank charges debited by bank
C. All of the above
D. Interest credited by bank
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Correct Answer: Option C

Explanation:
All these items may be recorded by bank but not yet by customer, causing timing differences.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
In a BRS, bank charges recorded twice in the Cash Book will result in:
A. Cash Book balance being lower than Pass Book balance
B. No difference
C. Pass Book balance being lower than Cash Book
D. Cash Book balance being higher than Pass Book balance
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Correct Answer: Option A

Explanation:
Recording an expense twice in the Cash Book excessively reduces its balance, making it lower than the actual Pass Book balance.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
A 'Cost Centre' is:
A. A location, person, or item of equipment for which costs are accumulated
B. A unit of product
C. A sales territory
D. A method of pricing
Discuss
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Correct Answer: Option A

Explanation:
Cost centre is a segment of the organization where costs are collected, e.g., department, machine.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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