A firm's assets total ₹10,00,000 and its owner's equity is ₹4,00,000. The firm borrows ₹2,00,000 from a bank. After the borrowing, what is the total liabilities to outsiders? MCQ with Answer and Explanation

Question
A firm's assets total ₹10,00,000 and its owner's equity is ₹4,00,000. The firm borrows ₹2,00,000 from a bank. After the borrowing, what is the total liabilities to outsiders?
A. ₹4,00,000
B. ₹6,00,000
C. ₹10,00,000
D. ₹8,00,000
Answer: Option D
Solution (By JKSSB Mock Tests)
Initially, liabilities = Assets - Equity = 10,00,000 - 4,00,000 = 6,00,000. After borrowing 2,00,000, liabilities become 8,00,000.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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S1: GST is levied on the supply of goods and services. S2: GST subsumed all indirect taxes in India. Which statement(s) is/are correct?
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Correct Answer: Option B

Explanation:
GST is a comprehensive indirect tax levied on the supply of goods and services. However, it did not subsume *all* indirect taxes; for example, basic customs duty, stamp duty, and electricity duties are still outside GST. S1 is correct, S2 is incorrect.
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Correct Answer: Option C

Explanation:
DBT aims to transfer benefits and subsidies directly to the Aadhaar-seeded bank accounts of the beneficiaries, eliminating middlemen.
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Correct Answer: Option C

Explanation:
Non-company entities follow AS issued by ICAI.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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