Basic Q

Sep 06, 2006 4 Replies

The liability of X company = 1/3 of total assets owner's equity is $240,000 what is the liability amount?


OE is 2/3, being $240,000, so divide this be 2 = $120,000, and you have

1/3 of your total assets, which is your liability.

Assets = Liability + Owners Equity $360,000 = $240,000 + $120,000

36 = 24 + 12 3 = 2 + 1 1 = 2/3 + 1/3

You get the drift ;-0

cristo wrote:

Only I got it the wrong way around sorry!

The liability of X company = 1/3 of total assets owner's equity is $240,000 what is the liability amount?

Assets = Liability + Owners Equity $360,000 = $120,000 + $240,000

36 = 12 + 24 3 = 1 + 2 1 = 1/3 + 2/3

So liability is $120,000

I c>> OE is 2/3, being $240,000, so divide this be 2 = $120,000, and you have

is ok, i figured it out with what you posted. Thanks very much for your help.

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