Question

Assets and liabilities of a business were: Land and Buildings ₹ 4,00,000; Debtors ₹ 75,000; Capital ₹ 3,50,000; Cash ₹ 25,000; Stock of goods ₹ 50,000; Prepaid rent ₹ 25,000. Find out the Liabilities. *

Answer 1

Answer:

Liabilities = 2,25,000

Explanation:

ASSETS = CAPITAL + LIABILITIES

Total of assets = 5,75,000

Capital = 3,50,000

Then,

5,75,000 = 3,50,000 +Liabilites

5,75,000 = 3,50,000 + Liabilities

2,25,000 = Liabilities