From the following information calculate total assets of the business:
Capital Rs.40,000, Creditors Rs.30,000, Revenue earned during the period Rs.75,000, Expenses incurred during the period Rs.20,000, Value of stock unsold Rs.20,000.
Plz explain me as well!
Answers
Answer:
Total assets are Rs.1,050,000
Explanation:
According to Accounting Equation;
Formula: Total Assets = Owners Equity + Total liabilities
whereas; Net Profit=Total Revenue - Expenses- Unsold =750000-200000-200000 =Rs.350000
Owners Equity = Capital+Net Profit-Drawing =400000+350000-0 =Rs.750000
Hence, Total Asset =750000+350000 Total Assets = Rs 1,050,000
Answer:
you have to solve it by your own