Question

Question 23.
Calculate the total assets if:
(i) Capital is ₹ 40,000.
(ii) Creditors are ₹ 25,000.
(iii) Revenue during the period is ₹ 50,000.
(iv) Expenses during the period are ₹ 40,000.

Answer 1

Answer:

the total assets is 75000

Explanation:

capital + creditors + (revenue-expenses )= assets

40000+25000+(50000-40000)=assets

65000+10000= asset

# assets = 75000

Answer 2

Total assets amounts to $75,000

Explanation:

The total assets would be computed by using the accounting equation, which is as:

Assets = Liabilities + Shareholders' equity

where

Liabilities involves

Creditors amounts to $25,000

Shareholders' equity involves

Capital amounts to $40,000

Net Income = Revenue - Expense

= $50,000 - $40,000

= $10,000

Putting the values above in the equation:

Assets = $40,000 + $25,000 + $10,000

Assets = $75,000

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