If the assets of a business are ₹ 2,20,000 and Creditors are ₹ 80,000. Calculate the Capital of the business.
₹ 300000
₹ 180000
₹ 280000
₹ 140000
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Rs. 1,30,000
Assets = Rs. 1,80,000; Net worth or Owner's Equity = ?; Outside Liability = Rs. 50,000
The accounting equation is:
Assets = Outside Liability + Owner's Equity or Net Worth
Rs. 1,80,000 = Rs. 50,000 + Owner's Equity or Net Worth
Owner's Equity or Net Worth = Rs. 1,80,000 - Rs. 50,000
Owner's Equity or Net Worth = Rs. 1,30,000
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