Question

If the capital of a business is Rs.1,05,000 and liabilities are Rs.25,000, then the value of assets will be .

• A. Rs.80,000
• B. Rs.1,05,000
• C. Rs.25,000
• D. Rs.1,30,000

Answer 1

The correct option is D Rs.1,30,000

As per the accounting equation,

Assets = Capital + Liabilities
= Rs.1,05,000 + Rs.25,000
= Rs.1,30,000