Practice - What is a Statement of Affairs?
Practice Questions
Test your understanding with targeted questions
Define the term 'Statement of Affairs'.
💡 Hint: Think about what this statement provides regarding the company's financial position.
Why is the Statement of Affairs prepared at the start and end of a period?
💡 Hint: Consider the importance of tracking capital's progress.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does the Statement of Affairs summarize?
💡 Hint: Focus on the financial position of a business.
True or False: The Statement of Affairs helps estimate capital.
💡 Hint: Consider how this statement influences business assessments.
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Challenge Problems
Push your limits with advanced challenges
A business has total assets of ₹150,000, total liabilities of ₹60,000. Calculate the capital and then determine net profit if the opening capital was ₹80,000 at the start of the year.
💡 Hint: First, calculate the capital and then use it to find the profit.
If a company reports ₹200,000 in assets and ₹50,000 in liabilities, and changes to capital occur due to a ₹15,000 withdrawal, what is the new calculated capital?
💡 Hint: Start with assets minus liabilities, then adjust for the withdrawal.
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