The principle of double entry developed from the axioms of accounting equation is given as
- Liabilties + Equity = Net assets
- Assets + Equity = Liabilities
-
Liabilities + Equity = Assets
- Assets + Liability = Equity
The correct answer is: C
Explanation
The accounting equation states that:
- Capital( Equity) = Assets - Liabilities
- Assets = Capital (Equity) - Liabilties
- Liabilties = Assets - Capital (Equity)
- Equity(Capital ) = Assets