Question

If the capital of business Rs.1,50,000; creditors of Rs. 50,000 and bills payable of Rs. 10,000 of
a business total assets of the business will be:
(a) Rs, 1,60,000
(b) RS. 2,10,000
(c) Rs. 2,00,000
(d) Rs. 60,000​

Answer 1

Answer:

Assets = Rs. 1,50,000; 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. 1,50,000 = -Rs. 50,000 + Owner's Equity or Net Worth

• Owner's Equity or Net Worth = Rs. 1,50,000 + Rs. 50,000

• Owner's Equity or Net Worth = Rs. 2,00,000

• bills payable in ₹2,00,000 - ₹10,000 = 2,10,000