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