If Capital of business Rs 400000 and creditor Rs 200000 then the total equality/assets equals to________
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Answer:
Explanation:
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
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