Dear All,
Which of these equations is correct?
1. Assets = capital – liabilities
2. Assets = capital + liabilities
3. Assets = liabilities – capital
4. Assets = capital + owners equity
Ans:-
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Which of these equations is correct?
Replies (4)
TOTAL OF ASSETS MUST BE EQUAL TO THE TOTAL OF ALL LIABILITES(INCLUDING CAPITAL)
HENCE , ASSETS = LIABILITES +CAPITAL , THE FUNDAMENTAL ACCOUNTING EQUATION ALWAYS HOLD TRUE.
R. VERMA
| Originally posted by : RAMESH KUMAR VERMA | ||
 |
TOTAL OF ASSETS MUST BE EQUAL TO THE TOTAL OF ALL LIABILITES(INCLUDING CAPITAL) HENCE , ASSETS = LIABILITES +CAPITAL , THE FUNDAMENTAL ACCOUNTING EQUATION ALWAYS HOLD TRUE. R. VERMA |
 |
I m Agree with Mr. Ramesh.
2. Assets = capital + liabilities
THANKS TO ALL OF YOU FOR CLARIFICATION .
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