Which of these equations is correct?

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RAHUL KUMAR TAANK (Querist)
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21 October 2010 Dear experts,

Which of these equations is correct?

1. Assets = capital – liabilities

2. Assets = capital + liabilities

3. Assets = liabilities – capital

4. Assets = capital + owners equity

Ans:-

CA Ganpat Naik

CA Ganpat Naik (Expert)
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21 October 2010 assets = capital + liabilities

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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21 October 2010 TOTAL OF ASSETS MUST BE EQUAL TO THE TOTAL OF ALL LIABILITIES(INCLUDING CAPITAL)

HENCE , ASSETS = LIABILITIES +CAPITAL , THE FUNDAMENTAL ACCOUNTING EQUATION ALWAYS HOLD TRUE.

R. VERMA