A debtor of R3000 was written off, later the debtor pays R1000 which is correct About this question: A business reports total assets of R450 000 and equity of R270 000. What is the total liabilities balance according to the accounting equation?
Accounting
ScanSolve AI Answer
Answer
Step-by-step solution
4 stepsThe accounting equation states that Assets = Liabilities + Equity.
State the accounting equation
The fundamental accounting equation is:
Rearrange the equation to solve for Liabilities
To find the total liabilities, we can rearrange the equation:
Substitute the given values
Given:
Assets = R450,000
Equity = R270,000Calculate the total liabilities
The total liabilities balance is R180,000.
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