Authorised capital of a company is ₹ 5 lacs ; 40% of it is paid up. Loss incurred during the year is ₹…
Paid-up share capital is 40% of ₹ 5,00,000 = ₹ 2,00,000. Total accumulated losses equal the brought-forward loss of ₹ 2,00,000 plus the current year's loss of ₹ 50,000 = ₹…
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Authorised capital of a company is ₹ 5 lacs ; 40% of it is paid up. Loss incurred during the year is ₹ 50,000. Accumulated loss carried from last year is ₹ 2 lac. The company has a Tangible Net Worth of :
Answer and explanation
Correct answer C
Paid-up share capital is 40% of ₹ 5,00,000 = ₹ 2,00,000. Total accumulated losses equal the brought-forward loss of ₹ 2,00,000 plus the current year's loss of ₹ 50,000 = ₹ 2,50,000. Tangible Net Worth equals Paid-up Capital & Reserves minus Accumulated Losses/Fictitious Assets = ₹ 2,00,000 - ₹ 2,50,000 = ₹ (-)50,000.
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