Question

creditors - 16,000
bills payable - 12,000
third party liability - ?
(please also explain the method)​

Answer 1

Answer:

third party liability = 16000+12000=28000

Explanation:

Third party liability is the liability that relates to the people who are external to the business .Internal liability is the capital and external liability includes liabilities like bill payable, creditors , bank loan etc

therefore for the above question third party liability is creditor+bill payable