If the asset of business is Rs 2,00,000 and equity is Rs 50,000 then what will be the liability?
Last updated May 13, 2026
Correct Answer:
Option C —
1,50,000
This problem is solved using the fundamental Accounting Equation, which must always stay in balance for every business.The Calculation:The basic formula is:
{Assets} = {Liabilities} + {Equity}
To find the liability, we rearrange the formula:{Liabilities} = {Assets} - {Equity}
This means that out of the Rs\ 2,00,000 worth of assets owned by the business, Rs 50,000 was contributed by the owners (Equity) and the remaining Rs 1,50,000 was financed through external debts (Liabilities).
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
