Multiple choice

The assets on 31.12.2001 is of Rs. 60, 000 and the capital is of Rs. 45, 000. Its liabilities on that date shall be

  1. Rs. 60, 000

  2. Rs. 1, 05, 000

  3. Rs. 15, 000

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The fundamental accounting equation is: Assets = Capital + Liabilities. Therefore: Liabilities = Assets - Capital = 60,000 - 45,000 = 15,000. Option A incorrectly uses the asset value. Option B incorrectly adds capital and assets. Option D is unnecessary as option C is correct.

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