Question

Calculate total equity if :

A.Owner equity is $180,000$

B.creditors equity is $150,000$

C.Revenue earned during the period $2,00,000$

D.Expenses during the period , $80,000$

Answer 1

$\text{Total equity=Owner's equity+income-expanses=Assets-liabilities}$.

Hence,

$\text{Total equity}=180000-150000+200000-80000=150000$