Mr. X has a business of selling shoes. He bought goods worth $50,000 on credit from Mr. Y. Also, he borrowed a sum of $1,00,000 from his friend Mr. Z. What would be the amount of creditors which will be recorded in his books? A. $1,00,000 B. $50,000 C. $1,50,000 D. $2,00,000

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 22CE
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Mr. X has a business of selling shoes. He bought goods worth $50,000 on credit from Mr. Y. Also, he borrowed a sum of $1,00,000 from his friend Mr. Z. What would be the amount of creditors which will be recorded in his books?

A. $1,00,000

B. $50,000

C. $1,50,000

D. $2,00,000

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