Question

Prepare a specimen of a promissory note.

Answer 1

1. Capital = Assets – Liabilities

Rs. 1,20,000 = Rs. 4,00,000 – Rs. 1,80,000

1. Assets = Liabilities + Capital

Rs. 3,30,000 = Rs. 1,50,000 + Rs. 1,80,000

1. Liabilities = Assets – Capital

Rs. 3,20,000 = Rs. 6,00,000 – Rs. 2,80,000.