What will happen if an organization not maintain the
sufficient working capital?
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Answer / h.r. sreepada bhagi
Working Capital to a business is like lubricating oil to a
machine. If the machine is not lubricated it will result in
friction, excessive hear=t, corrosion and ultimately it will
stop working. Likewise, if a business entity has no or
shortage of working capital, it will initially affect the
day today operation and final may result in cessation of the
business itself & there by may lead to the closure of the
company.
| Is This Answer Correct ? | 12 Yes | 1 No |
Answer / vikas vangari
Working Capital is the life blood of business orgnisation.
Working capital is the minimum amount of capital that
requireds to meet day to dya business expenses. for eg.-
purchase, payment of wages, salary, daily expenses. etc.
Working Capital = Current Assets - current Liabilities.
| Is This Answer Correct ? | 10 Yes | 1 No |
Answer / anvesh
working capital is life blood of every organisation.
it is reqired to meet the day to day operations of an
organisation
| Is This Answer Correct ? | 2 Yes | 1 No |
yes i am agree with vikas and sreepadha bcoz the working
capital is like a blood flow in a body.till than that is
flowing body is alive. when it will stop the body will die
likewise having working capital in a organisation is
aliveness of organisation and not having working capital is
a death symbol of an organization.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / manoj s
If the company is not able to meet the days to days
reqirements, then the company position is too bad...
THE company has to fasten the collection of their debtors
and there products which they are sellin has to be sold
very soon at a profit.
IN order to have a sufficent workin capital
| Is This Answer Correct ? | 0 Yes | 0 No |
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0 Answers IBM, Kumaran Systems,
The following transactions relating to ABC Ltd for the month of 20x1 a) Services performed in relation to income recieved in advance total $1500 b)Supplies expense includes $400 of supplies that are still on hand at 30 June c)Interest accrued on the bank loan is 750 d)At the end of june paid rent for 3 months (June, july Aug) $6000 e)Credit sales for the month of June 2009 amounted to $50000. Past expierence shows that around 1.5% of net credit sales are written off as bad debts. XYZ ltd, previously notified ABC ltd that they have gone bankrupt, will be able to pay $1000, which was recieved at the end of the month. The provision of doubtful debt has an opening balance of $800. f) The owners of ABC Ltd wish to revise the balance of the provision of doubtful debts account to $3500. g) Depreciation of one year on the delivary van is $1500. h) On 30 June 2009, ABC Ltd sold an item of equipment for $40000 cash. The cost of equipment was $50000 and had a accumulated depreciation balance of $2000 REQUIRED: Prepare the relevant adjusting journal entries for the month of June 20x2
Audit 
