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Question
If total assets of a business are ₹ 1,30,000 and capital is ₹ 80,000, calculate creditors.
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Solution
Assets
=
Liabilities + Capital
1,30,000
=
Liabilities + 80,000
Liabilities
=
1,30,000 – 80,000
=
Rs 50,000
It is assumed that creditors are the only liability of the organisation, thus, Rs 50,000 are the creditors.
| Assets | = | Liabilities + Capital |
| 1,30,000 | = | Liabilities + 80,000 |
| Liabilities | = | 1,30,000 – 80,000 |
| = | Rs 50,000 |
It is assumed that creditors are the only liability of the organisation, thus, Rs 50,000 are the creditors.
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