Question

If owners equity of a business is $Rs.70,000$ and liabilities are of $Rs.40,000$ total assets of the business will be ___________.

• A. Rs. 1,10,000
• B. Rs. 30,000
• C. Rs. 70,000
• D. Rs. 40,000

Answer 1

The correct option is A Rs. 1,10,000

Accounting Equation = Owners Equity+ Liabilities=Total Assets

Rs.70000+Rs.40000 = Rs.110000

Hence, total value of assets = Rs.110000