Question 20.
If total assets of a business are ₹ 1,30,000 and net worth is ₹ 80,000, calculate the creditors.
Answers
Answered by
1
Answer:70000
Explanation: Assets=Liabilities +Capital
Answered by
6
Creditors will be $50,000
Explanation:
- The creditors will be computed by using the Accounting Equation of the Accounts. which is as:
Assets = Liabilities + Shareholders' Equity
where
Assets amounts to $130,000
Net worth is the shareholders' equity, which amounts to $80,000
Liabilities involve the creditors, which are those person or party who delivered the product and is owed the money by the debtors.
- So, putting the values above:
$130,000 = Liabilities (Creditors) + $80,000
Liabilities (Creditors) = $130,000 = $80,000
= $50,000
You can learn more from here about accounting equation:
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