Question

The outside liabilities of a business are Rs. $20,000$. The proprietor's capital is Rs. $50,000$. Total assets of the firm are worth ___________.

• A. Rs. $50,000$
• B. Rs. $30,000$
• C. Rs. $70,000$
• D. Rs. $20,000$

Answer 1

The correct option is C Rs. $70,000$

As per Accounting Equation

Assets = Liabilities + Capital

Assets = 20,000 + 50 , 000

= 70,000