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

R180,000\text{R}180,000

Step-by-step solution

4 steps

The accounting equation states that Assets = Liabilities + Equity.

  1. State the accounting equation

    The fundamental accounting equation is:
    Assets=Liabilities+Equity\text{Assets} = \text{Liabilities} + \text{Equity}

  2. Rearrange the equation to solve for Liabilities

    To find the total liabilities, we can rearrange the equation:
    Liabilities=Assets−Equity\text{Liabilities} = \text{Assets} - \text{Equity}

  3. Substitute the given values

    Given:
    Assets = R450,000
    Equity = R270,000

    Liabilities=R450,000−R270,000\text{Liabilities} = \text{R}450,000 - \text{R}270,000

  4. Calculate the total liabilities

    Liabilities=R180,000\text{Liabilities} = \text{R}180,000

    The total liabilities balance is R180,000.

Was this helpful?

Try one yourself

A new problem that tests the same skill.

Still stuck on this one?

Ask a follow-up, and the answer starts from this question.

Got a different question?Ask your own question