Question

IF ANY BODY WILL ANSWER THIS WILL BE MARKED AS BRAINLIEST. I took $1000 from my friend James and $500 from Bond.
While walking to the shops I lost $1000 so now I only have $500.
I did some shopping, spending $300 so now I have $200 left.
I gave $100 back to James and $100 back to Bond.

Now my liabilities are $900 for James and $400 for Bond, so my total liabilities are $1300.

Total liabilities + Shopping = $1300 + $300 = $1600, but I only borrowed $1500.
Where did the extra $100 come from?

Answer 1

Total liabilities =$900+$400=$1300$900+$400=$1300 (this is addition to your fund, so is your credit which you need to repay)

Expenses=loss+shopping=$1000+$300=$1300$1000+$300=$1300 (this has gone out from your fund).

So, in essence, we need to subtract shopping from liabilities , not add shopping with liabilities