Question

The liabilities of New Company equal one-third of the total assets, and owner's equity is P 120,000.00. What is the amount of liabilities?

Answer 1

Answer: L= 60,000

Explanation: A= L+ E

A = 1/3A + 120,000

A -1/3A = 120,000

2/3A = 120,000

A= 180,000

L =1/3 A

L= 1/3 of 180,000

L= 60,000