Question

the liabilities of a business increased by Rs.75,000 during a period of time and the equity in the

business decreased Rs. 30,000 during the same period, the assets of the business must have:

a. Decreased by Rs.105,000 b. Decreased by Rs.45,000 c. Increased by Rs.30,000

d. Increased by Rs.45,000​

Answer 1

Answer:

Assets = Rs. 1,80,000; Net worth or Owner's Equity = ?; Outside Liability = Rs. 50,000

The accounting equation is:

Assets = Outside Liability + Owner's Equity or Net Worth 

Rs. 1,80,000 = Rs. 50,000 + Owner's Equity or Net Worth 

Owner's Equity or Net Worth = Rs. 1,80,000 - Rs. 50,000

Owner's Equity or Net Worth = Rs. 1,30,000