Question

Calculate the shareholder equity from the following information:

Plant & Machinery   Rs.20000

Payables                      Rs.5000

Receivables                                Rs.5000

Investments              Rs.3000

Borrowings                 Rs.15000

Cash Balance              Rs.2000

A Rs.20000 Correct Answer Incorrect Answer
B Rs.10000 Correct Answer Incorrect Answer
C Rs.8000 Correct Answer Incorrect Answer
D Rs.7000 Correct Answer Incorrect Answer
E Rs.5000 Correct Answer Incorrect Answer

Solution

Assets = liabilities + Equity; here assets = plant & machinery + receivables + investments + cash and liabilities = payables + borrowings Thus Equity = (20000+5000+3000+2000) – (5000+15000) = 10000

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