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If total assets of a business are rupees 130000 and capital is rupees 80000 calculate creditors?
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If total assets of a business are rupees 130000 and capital is rupees ...
Calculation of Creditors from Total Assets and Capital
When calculating the amount of creditors a business has, we need to take into account the total assets of the business and the amount of capital invested. Here's how to do it:
Step 1: Determine the Total Liabilities
The first step is to determine the total liabilities of the business. This includes all debts and obligations that the business owes to others. The formula for total liabilities is:
Total Liabilities = Total Assets - Capital
Using the figures provided in the question, we can calculate the total liabilities as follows:
Total Liabilities = 130000 - 80000
Total Liabilities = 50000
Step 2: Determine the Amount of Creditors
The next step is to determine the amount of creditors the business has. Creditors are those who have provided goods or services to the business on credit and have not yet been paid. To calculate the amount of creditors, we need to subtract other liabilities from the total liabilities. The formula for calculating creditors is:
Creditors = Total Liabilities - Other Liabilities
In the absence of other liabilities, the amount of creditors will be equal to the total liabilities. In this case, we assume there are no other liabilities, so:
Creditors = Total Liabilities
Creditors = 50000
Conclusion
Based on the figures provided, the amount of creditors for this business is rupees 50000. This calculation is important for businesses to understand their financial position and to plan for future growth and investments.
Community Answer
If total assets of a business are rupees 130000 and capital is rupees ...
Asset=130000
Net Worth=Liability=80000
&
we know that,
Asset. =Capital+Liability
Capital =Asset - Liability
=130000-80000
Capital =50000
Net Worth=Liability=80000
&
we know that,
Asset. =Capital+Liability
Capital =Asset - Liability
=130000-80000
Capital =50000
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If total assets of a business are rupees 130000 and capital is rupees 80000 calculate creditors?
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If total assets of a business are rupees 130000 and capital is rupees 80000 calculate creditors? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about If total assets of a business are rupees 130000 and capital is rupees 80000 calculate creditors? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If total assets of a business are rupees 130000 and capital is rupees 80000 calculate creditors?.
If total assets of a business are rupees 130000 and capital is rupees 80000 calculate creditors? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about If total assets of a business are rupees 130000 and capital is rupees 80000 calculate creditors? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If total assets of a business are rupees 130000 and capital is rupees 80000 calculate creditors?.
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