Sydney & Associates had the following assets and liabilities.Equity is:
$
Cash in hand 4 000
Bank overdraft 11 000
Sundry creditors 3 000
Inventory 2 700
Sundry debtors 8 100
Office furniture 4 500
Loan from Perth Ltd 12 000
Motor vehicles 12 000

Question

Quizplus · Accepted Answer

Equity is calculated by subtracting total liabilities from total assets. Total assets in this case are $41,300 ($4,000 + $2,700 + $8,100 + $4,500 + $12,000 + $12,000). Total liabilities are $26,000 ($11,000 + $3,000 + $12,000). Therefore, equity is $15,300 or Choice C.

Sydney & Associates Had the Following Assets and Liabilities