Question

Classify the following items into external and internal liabilities :
i. Bank loan
ii. Interest on capital (unpaid)
iii. Capital
iv. Sundry Creditors
v. Outstanding rent
vi. Undistributed Profits
vii. Bills Payable
viii. Bank Overdraft
ix. Salaries due but not paid
x. Reserves

Answer 1

Answer:

1) external

2) internal

3) internal

4) external

5) external

6) internal

7) external

8) external

9) internal

10) internal