wiz-icon
MyQuestionIcon
MyQuestionIcon
2
You visited us 2 times! Enjoying our articles? Unlock Full Access!
Byju's Answer
Standard XII
Mathematics
Sum of n Terms
If during the...
Question

If during the accounting period the assets increased by Rs. 7,000, and the owner's equity decreased by Rs. 3,000, then the liabilities will be ______________.

A
increased by Rs. 10,000
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
increased by Rs. 4,000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
decreased by Rs. 4,000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
decreased by Rs. 10,000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is A increased by Rs. 10,000
This can be summarized as through accounting equation:

Owners Equity+Liabilities= Assets
Putting the information in to the equation,

Rs. -3000+Liabilities=Rs.7000
Liabilities=Rs.7000+Rs.3000
Hence Liabilities will increase by Rs.10000

flag
Suggest Corrections
thumbs-up
0
similar_icon
Similar questions
Q. If during the accounting period the assets increased by Rs 7,000, and the owner's equity decreased by Rs 3,000, then the liabilities must have ________.
Q. The following is the profit and loss account of Yamuna Limited. Yamuna Limited Profit and Loss Account for the year ended March 31, 2007
ParticularsAmt. (Rs.)Amt. (Rs.)Sales10,00,000Cost of Goods SoldOpening Stock2,50,000Purchase5,00,000––––––––––7,50,000(-)Closing Stock2,00,000––––––––––5,50,000––––––––––Gross Profit4,50,000Operating Expenses3,00,000––––––––––Net Profit1,50,000––––––––––

Additional Informations:
(i) Trade debtors decrease by Rs. 30,000 during the year.
(ii) Prepaid expenses increase by Rs. 5,000 during the year.
(iii) Trade creditors decrease by Rs. 15,000 during the year.
(iv) Outstanding expenses increased by Rs. 3,000 during the year.
(v) Operating expenses included depreciation of Rs. 25,000.

Compute net cash provided by operations for the year ended March 31, 2007 by the indirect method.
Q. Current liabilities are Rs.10,000 and current assets are Rs. 15,000. If debtors realized Rs.3,000 and Rs.6,000 worth preference shares got converted into equity, the impact on working capital (WC) would be _______________.
Q. Calculate debt equity ratio, from the following information:
Total external liabilities = Rs. 5,00,000
Balance sheet total = Rs. 10,10,000
Current liabilities = Rs. 1,00,000
Fictitious assets = Rs. 10,000
Q. If the owner's equity is Rs. 80,000 and external liability Rs. 40,000, Cash in hand Rs. 20,000, the total assets of the firm will be ___________.
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Arithmetic Progression - Sum of n Terms
MATHEMATICS
Watch in App
explore_more_icon
Explore more
Sum of n Terms
Standard XII Mathematics
Join BYJU'S Learning Program
book_image
AI Tutor
book_image
Textbooks
book_image
Question Papers
book_image
Install app
CrossIcon