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  • Accountancy XI
  • Capital is 60000 asset is 100000 then liability is ?
Multiple choice

Capital is 60000 asset is 100000 then liability is ?

  1. 160000

  2. 40000

  3. 26500

  4. none

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Using the accounting equation Assets = Capital + Liabilities: 100000 = 60000 + Liabilities. Therefore, Liabilities = 100000 - 60000 = 40000. This is a direct application of the fundamental accounting equation.

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