Question

(ii) The assets of the business as on March 31, 2015 are worth
Rs. 500,000 and its capital is Rs. 350,000. Its liabilities on that
date shall be
Rs. 850,000
b. Rs. 150,000
Rs. 350,000
a.
C.​

Answer 1

Answer: Option B - 1,50,000

Explanation:

The basic Accounting formula is ;

Assets = Liabilities + Capital

i.e

Liabilities =  Assets - Capital

Therefore, according to the given question

Liabilities = 5,00,000 - 3,50,000

                = 1,50,000 ( Option B)