Question

Cash
Find out value of account receivable from following cash ₹40000, account payable₹30000, office equipment₹20000, owner equity₹80000

Answer 1

According to the given question, The amount of Accounts Receivable can only be calculated under the following manner:-

1. Total Liabilities = Owner Equity + Account Payable

                            = 80000 + 30000

                            = 110000

2. Total Assets = Office equipment + Account Receivable + Cash

                         = 20000 + Account Receivable + 40000

                         = Account Receivable + 60000

3. Account Receivable + 60000 = Total Liabilities

= Account Receivable = 110000 - 60000

= Account Receivable = 50000

The Value of Account Receivable is generated at Rs. 50000