Accounting Equation: ASSETS – LIABILITIES = CAPITAL QUESTION: Anushka began a sole trade business on 1 January 20X1. During the first month of trading, the following transactions took place: She started the business with £5,000 of cashShe took out a loan from the bank of £10,000She purchased a van for £12,000 cashShe purchased 100 units … Read More

 WHAT IS A LIABILITY? Liabilities are things that are owed by the business which are the obligations or debts of the business. These could be classed as: ·        Non-Current liabilities ·        Current liabilities  Non-Current liabilities are obligations that are owed by the business over a long period of time usually for longer than one year … Read More