Equation
This query is : Resolved
Ashish Moses Frankey
(Querist)
23 July 2014
I dont understand this equation Capital=Asset-Liabilites
Liabilities=Asset-Capital .Please help me to understand this...
Vishnu Saboo
(Expert)
23 July 2014
Balance sheet has two parts one is Liability and another is asset.
liability consist 1. capital - which brought by company/firm and 2. other liability like creditors, bills payables, and more.
so if you have been asked for Capital and total asset and other liability given than asset-other liability= capital.
if capital and asset given then Asset - Capital = Other Liabililty.
if Other liability and capital is given then Other liability + capital = asset.
liability consist 1. capital - which brought by company/firm and 2. other liability like creditors, bills payables, and more.
so if you have been asked for Capital and total asset and other liability given than asset-other liability= capital.
if capital and asset given then Asset - Capital = Other Liabililty.
if Other liability and capital is given then Other liability + capital = asset.
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