The total assets of the business amounted to P2,000,000 and liabilities amounted to P400,000. The owner withdrew cash amounting to P70,000. By how much is the total liabilities lower than the owner's equity after the withdrawal?

The total assets of the business amounted to P2,000,000 and liabilities amounted to P400,000. The owner withdrew cash amounting to P70,000. By how much is the total liabilities lower than the owner's equity after the withdrawal?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 5SEQ: Which of the following transactions changes only the mix of assets and does not affect liabilities...

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Please answer the question correctly. Thank you.

The total assets of the business amounted to P2,000,000 and liabilities amounted to
P400,000. The owner withdrew cash amounting to P70,000. By how much is the
total liabilities lower than the owner's equity after the withdrawal?

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