Capital = Assets − Liabilities = 90,000 − 26,000 = ₹64,000. Option (c).

Using the accounting equation (the basis of a statement of affairs):

$\text{Capital} = \text{Assets} - \text{Liabilities} = 90{,}000 - 26{,}000 = 64{,}000$

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The excess of assets over liabilities is Capital.

By the accounting equation, Assets = Liabilities + Capital, so Capital = Assets − Liabilities (Accounts from Incomplete Records, TN HSC Commerce). When a trader who keeps incomplete records prepares a Statement of Affairs, the difference between the total assets and total liabilities is the ba …

Capital = Assets − Liabilities = 85,000 − 21,000 = ₹64,000.

In the TN HSC Class-12 Accountancy syllabus (Accounts from Incomplete Records), when full double-entry records are not kept, the proprietor's capital is found by preparing a Statement of Affairs, using the accounting equation:

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Using the accounting equation, Capital = Assets − Liabilities = ₹5,00,000 − ₹2,00,000 = ₹3,00,000.

The proprietor's capital is the balancing figure between what the business owns and what it owes to outsiders:

$\text{Capital} = \text{Assets} - \text{Liabilities}$

• Assets = ₹5,00,000
• Liabilities (outside) = ₹2,00,000
• Capital = ₹5,00,000 − ₹2,00,000 = ₹3,00,000 …

By the accounting equation, Assets − Capital = Liabilities, so the excess of assets over capital is the liabilities — option (a).

In the Accounts from Incomplete Records topic of the TN HSC Commerce syllabus, capital is found by preparing a Statement of Affairs, which rests on the basic accounting equation:

Assets = Capital + Liabilities

Rearranging this equation:

Capital = Assets − Liabilities, and therefore Liabilities = Assets − Capital.

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A Statement of Affairs is a statement of assets and liabilities used to find capital under single entry.

In the Tamil Nadu HSC Class-12 Accountancy syllabus, when records are incomplete (single entry), a proper Balance Sheet cannot be drawn, so a Statement of Affairs is prepared. It lists all assets on one side and all liabilities on the other; the balancing figure (assets − liabilities) is the capital on that date.

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Assets minus liabilities equals capital.

In the Tamil Nadu HSC Class-12 Accountancy syllabus, the accounting equation is Assets = Liabilities + Capital. Rearranging, Capital = Assets − Liabilities. So the excess of assets over liabilities is the owner's capital.

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A Statement of Affairs is prepared under incomplete records to ascertain the Capital of the business (the balancing figure), so option (c) is correct.

A business that keeps incomplete records (single entry) has no proper ledger, so it cannot draw up a Trial Balance or a normal Balance Sheet. To estimate profit, it prepares a Statement of Affairs — a rough balance-sheet-like statement listing all known assets on one side and all liabilities on the other.

The difference between total assets and total liabilities is the balancing figure, which is the capital on that date. By finding capital at the beginning and at the end of the year (and adjusting for drawings and fresh capital), profit or loss is then computed by comparison.

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Closing Capital + Drawings − Additional Capital = Adjusted Closing Capital, so option (d) is correct.

Under the capital comparison method, profit is found as: Adjusted closing capital − Opening capital.

Before comparing, the closing capital is adjusted:

• Add back drawings, because drawings reduced the closing capital but were not a business loss.
• Deduct additional capital, because fresh capital introduced increased closing capital but was not a profit. …