Question Bank - Accountancy

Here's the question bank on all the accountancy topics.

Given:If the total assets of a business are Rs. 1,80,000 and total outside liabilities are Rs. 50,000, the net worth of the firm will be ___________.

A.
Rs. 1,30,000
B.
Rs. 2,30,000
C.
Rs. 1,80,000
D.
Rs. 50,000

Solution:

Given: Assets = Rs. 1,80,000;Outside Liability = Rs. 50,000To find: Net worth or Owner's Equity = ?Working Note:The accounting equation is:Assets = Outside Liability + Owner's Equity or Net Worth Rs. 1,80,000 = Rs. 50,000 + Owner's Equity or Net Worth Owner's Equity or Net Worth = Rs. 1,80,000 - Rs. 50,000Owner's Equity or Net Worth = Rs. 1,30,000Therefore, If the total assets of a business are Rs. 1,80,000 and total outside liabilities are Rs. 50,000, the net worth of the firm will be Rs. 1,30,000. NOTE: The original question asked in AWES Commerce 2012 official paper is incomplete. We have modified the question for your practice.

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