Find out the Total Liability (internal as well as external) at the end of the year if :
(i) Proprietor's equity at the beginning of the year * 80.000
(ii) Creditors' equity at the beginning of the year 40,000
(iii) Proprietor's withdrawal during the year 15,000
(iv) Net profit during the year 25,000
(v) Borrowed from Allahabad Bank during the year 250,000
Answers
Answer:
Owner's equity = Rs. 80,000; External liability = Rs. 40,000; Cash in hand = Rs. 20,000; Other assets = ?; Total assets = ?
The accounting equation is:
Assets = Liabilities + Owner's equity (Net worth)
(Cash in hand + Other assets) = Liabilities + Owner's equity (Net worth)
Rs. 20,000 + Other assets = Rs. 40,000 + Rs. 80,000
Other assets = Rs. 40,000 + Rs. 80,000 - Rs. 20,000
Other assets = Rs. 1,00,000
Hence, Total assets = Rs. 1,00,000 + Rs. 20,000
Total assets = Rs. 1,20,000
Answer:
Find out the Total Liability (internal as well as external) at the end of the year if :
(i) Proprietor's equity at the beginning of the year * 80.000
(ii) Creditors' equity at the beginning of the year 40,000
(iii) Proprietor's withdrawal during the year 15,000
(iv) Net profit during the year 25,000
(v) Borrowed from Allahabad Bank during the year 250,000