Question

A business has assets of $Rs.45,700$ and owner's equity $Rs.13,200$. What is the amount of liabilities?

• A. $Rs.32,500$
• B. $Rs.57,522$
• C. $Rs.44,312$
• D. None of these.

Answer 1

The correct option is A $Rs.32,500$

Accounting Equation is a s follows:

Owner's Equity + Liabilities = Total Assets

Rs.13200 + Liabilities = Rs.45700

Therefore,

Liabilities = Rs.45700 - Rs.13200

Liabilities = Rs. 32500