Question 10 of 34beginner🔧 ApplyShort Answer1 mark

What is the amount of capital with which Mr. Sunrise started business.

Correct Answer

₹ 5,00,000

Exercise: Test Your Understanding - V | Q: 1 | (Page 21)
For More Understanding

Explanation

According to the context provided, Mr. Sunrise started a business for buying and selling of stationery with ₹ 5,00,000 as an initial investment. As defined in the context, 'Amount invested by the owner in the firm is known as capital.' Therefore, the capital with which Mr. Sunrise started the business is ₹ 5,00,000.

Solution Steps

  1. Step 1: Read the case study which states - 'Mr. Sunrise started a business for buying and selling of stationery with ₹ 5,00,000 as an initial investment.'

  2. Step 2: Apply the definition that capital is the amount invested by the owner in the firm.

  3. Step 3: Conclude that the capital = ₹ 5,00,000

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