A business has the following items in it: Land Rs. 1,500,000 Machinery Rs. 80,000 Cash Rs. 20,000 Owners equity Rs. 900,000 Loan Rs. 500,000 Creditors?

Answer: Option A

The accounting equation is Assets = Liabilities + Owners' Equity.

In this case:

Assets = Land + Machinery + Cash = 1,500,000 + 80,000 + 20,000 = Rs. 1,600,000

Liabilities + Owners' Equity = Loan + Creditors + Owners' Equity

1,600,000 = 500,000 + Creditors + 900,000

Solving for Creditors:

1,600,000 - 500,000 - 900,000 = Creditors

Creditors = 200,000

Therefore, the amount for Creditors is Rs. 200,000.