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What about 60000 ? What to do of that

Dear Student
In this question, there are two ways of calculating capital employed -
1. Capital Employed = Total Assets - Creditors
2. Capital Employed = Partner's Capital + Reserves

If Capital Employed is calculated through 2nd method i.e. Capital Employed = Partner's Capital + Reserves in that case Partner's Capital of 60000 will be in use.

I hope it's clear now.

Regards

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If you construct liabilities side of Balance sheet you will get  Capital A/c - 60,000, Reserve - 10,000 and Creditors - 5000 , Total 75,000 which is equal to Total Assets i.e. 75,000. Capital Employed is = Total Assets  - Creditors i.e 75,000 - 5000 = 70,000. What does this 70,000 consists of .. It is sum of Capital balance of 60000 and Reserve and Surplus 10,000 = 70,000. So, to answer your query, 60,000 is already included in the calculation of 70,000.   
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