Sundry Creditors, Bank Loan, Capital, Cash at Bank
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Liabilities on Balance Sheet
Business requires some resources which it uses over its useful life. Resources do not come free; business requires finance to acquire them. Finance is provided by the owners through investments, Banks, other financial institutions, suppliers.
The balance sheet shows the financial position i.e. balances of assets, liabilities on balance sheet, and capital of an entity at the end of the financial year.
It shows the sources of the fund (liabilities and capital) and also the application of such funds (i.e. Assets). The total amounts of both the liabilities on balance sheet and assets on the balance sheet must match because of the accounting equation (Assets = Liabilities + Capital).
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