Question

If total assets of a business are ₹ 1,50,000 and Net worth of the business is ₹ 25,000 then calculate the amount of loan taken by the business from bank.​

Answer 1

Answer:

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

Answer 2

Answer:

1,25,000 will be the amount of loan