MGT101 Assignment Idea Solution 1

Question #1
1 Total assets of a business are Rs 100,000 and Total liabilities are Rs 41,000. What will
be the amount of owner’s equity? (1 mark)
Answer:
Owner’s equity = total assets – total liabilities
= 100,000 – 41,000
= 60,000
2 Total assets of a business are Rs 500,000 and Owner’s equity is Rs 300,000.
What will be the amount of Total Liabilities? (1 mark)
Answer:
Total liabilities = Total Assets – Owner’s Equity
= 500,000 – 300,000
= 200,000
3 Total Liabilities of a business are Rs 400,000 and Owner’s Equity is Rs 500,000. What
will be the amount of Total Assets? (1 Mark)
Answer:
Total Assets = Total Liabilities + Owner Equity
= 400,000 + 500,000
= 900,000