If total assets of a business are ₹ 1,30,000 and capital is ₹ 80,000, calculate creditors.
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Assets = Liabilities + Capital
1,30,000 = Liabilities + 80,000
Liabilities = 1,30,000 - 80,000
= ₹ 50,000
It is assumed that creditors are the only liability of the organisation, thus, ₹ 50,000 are the creditors.
1,30,000 = Liabilities + 80,000
Liabilities = 1,30,000 - 80,000
= ₹ 50,000
It is assumed that creditors are the only liability of the organisation, thus, ₹ 50,000 are the creditors.
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