Question

A business has the following items in it:
Land - $Rs1000000$
Machinery - $Rs20000$
Cash - $Rs10000$
Debt - $Rs0$
Owner's equity will be _____________.

• A. $Rs.1020000$
• B. $Rs.1010000$
• C. $Rs.1030000$
• D. None of the above

Answer 1

The correct option is C $Rs.1030000$

Accounting equation can be termed as:

Total Assets = Owner's Equity(Capital) + Liabilities

Owner's Equity = Total Assets

Owner's Equity = Land+Machinery+Cash

Owner's Equity = 1000000+20000+10000

Owner's Equity = 1030000.