Final answer:
The value of total assets is calculated using the accounting equation Assets = Liabilities + Owner's Equity. Since Capital is Rs. 5,00,000 and Creditors are Rs. 2,50,000, the total assets amount to Rs. 7,50,000, corresponding to option C.
Step-by-step explanation:
The value of total assets in this situation can be calculated using the fundamental accounting equation: Assets = Liabilities + Owner's Equity. Here, the owner's equity is represented by the capital, and the liability is represented by the creditors. We do not use expenses and revenue in this equation since they pertain to the income statement and have already influenced the capital (or equity).
Given that the Capital (Owner's Equity) is Rs. 5,00,000 and the Creditors (Liabilities) are Rs. 2,50,000, using the accounting equation:
Assets = Liabilities + Owner's Equity = Rs. 2,50,000 (Creditors) + Rs. 5,00,000 (Capital) = Rs. 7,50,000.
Thus, the value of total assets is Rs. 7,50,000, which corresponds to option C.
The value of total assets is calculated using the accounting equation Assets = Liabilities + Owner's Equity. Since Capital is Rs. 5,00,000 and Creditors are Rs. 2,50,000, the total assets amount to Rs. 7,50,000, corresponding to option C.