Question
A business owner invests ₹10 lakh cash and machinery
worth ₹5 lakh into the business. The business also borrows ₹3 lakh from the bank. What is the total assets of the business?Solution
owner’s equity = ₹15 lakh and liabilities (loan) = ₹3 lakh Assets = Liabilities + Equity = ₹3 lakh + ₹15 lakh = ₹18 lakh (total assets)
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