Question

Calculate the total liability if: Owner’s capital at the beginning is ₹60,000. Creditors at the end is ₹50,000. Revenue during the period is ₹70,000. Expenses during the period are ₹65,000. Also, calculate the amount of owner’s capital at the end.

Q: Answer-Calculate the total liability if: Owner’s capital at the beginning is ₹60,000. Creditors at the end...

Total liability is calculated as Total Liability Owners Capital at the End Creditors To find Owners Capital at the end Owners Capital at the End Owners Capital in the Beginning Revenue - Expenses Owners Capital at the End 60,000 70,000 - 65,000 65,000 Thus, Total Liability 65,000 50,000 1,15,000