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Assets. These are items of value belonging to a business, e g Premises, Stock, Debtors, Bank. Assets £36,000. Liabilities. These are amounts which the company owes, eg a Bank Overdraft, money owed to Creditors. 9000. Capital.
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Assets • These are items of value belonging to a business, e g Premises, Stock, Debtors, Bank Assets £36,000
Liabilities • These are amounts which the company owes, eg a Bank Overdraft, money owed to Creditors 9000
Capital • This is money invested by the owner or shareholders in the business 27000
Assets minus Liabilities equals Capital • This means that 36,000 minus 9,000 equals 27,000 36,000 9,000 27,000