Question

Using the concept of accounting equation, compute missing figure from the following:
Assets = Rs 50,000, Liabilities = Rs 20,000, Owner’s Capital = ?

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

Answer 1

The correct option is B

Rs 30,000

Owner’s Capital = Assets – Liabilities
= Rs 50,000 - Rs 20,000
= Rs 30,000