Question

If total assets of a business at the end of the year are Rs. 20,00,000; capital is Rs. 8,00,000 and drawings are Rs. 60,000; calculate creditors.

Rs. 28,00,000

Rs. 12,00,000

Rs. 11,40,000

Rs. 18,00,000

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Answer 1

Answer:

total creditors RS.18,00,000

Answer 2

Given:

Total asset = Rs. 20,00,000

Capital = Rs.8,00,000

Drawings = Rs. 60,000

To find:

amount for creditors

Solution:

Total assets = Rs. 20,00,000

Capital = Rs. 8,00,000

Drawings = Rs. 60,000

let the value of creditors be 'x'

$total \: assets = capital + drawings + creditors \:$

Total assets include all the liabilities and are the sum excess of the assets.

$2000000 = 800000 + 60000 + x$

$2000000 = 860000 + x$

$2000000 - 860000 = x$

$1140000 = x$

Therefore the value for creditors is Rs. 11,40,000

The correct option is option (c) Rs. 11,40,000