Question

If total assets of a business are 130000 and net worth is 80000, calculate the creditors.

Answer 1

Given,

Asset=130000

Net worth=Liability=80000

We know that,

Asset=Capital+ Liability

Capital=Asset-Liability

= 130000 - 80000

Capital=50000

Answer 2

GIVEN: Total assets = 1,30,000 ;  Net Worth = 80,000

TO FIND: Creditors

SOLUTION:

Accounting equation is Total Assets = Capital + Liability

• Net worth means the capital, which is invested in the business.
• Liability means how much is the amount which we owe to outsiders.
• Creditors and liability are the same.
• By putting the values in the accounting equation we can easily get creditors.

Assets = Capital + Liability

1,30,000 = 80,000 + Liability

1,30,000 - 80,000 = Creditors

50,000 = Creditors

Creditors are 50,000 .