Q.If a firm's total assets are ₹8,50,000 and its capital is ₹5,50,000, find its total liabilities using the Accounting Equation.

A direct one-step application of Assets = Liabilities + Capital to find the missing term. …

The Accounting Equation states: Assets = Liabilities + Capital

Rearranging to solve for Liabilities: Liabilities = Assets − Capital

Substituting the given figures: Liabilities = ₹8,50,000 − ₹5,50,000 = ₹3,00,000 …

Rearrange the accounting equation to isolate the unknown term, substitute the known figures, then verify by adding the two computed/given right-hand …

Adding Assets and Capital instead of subtracting — the equation must be rearranged c …