ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The difference between the total assets and total liabilities plus owner’s equity will be the missing figure.

Detailed explanation-2: -To calculate liabilities, simply list out the amount that your company owes across all of its obligations (both current and future) and add them together. This may require gathering up bills, loan documents, and other important paperwork.

Detailed explanation-3: -It is calculated by deducting all liabilities from the total value of an asset (Equity = Assets – Liabilities).

Detailed explanation-4: -The main accounting equation is: Assets = Liabilities + Equity. Together, they make up a company’s balance sheet. The concept behind it is that everything the business has came from somewhere-either a third party, such as a lender, or an owner, such as a stockholder.