Return to the solution for P Barrack in question 3.6. Write next to each entry whether it is a debit [dr] or credit

[cr] in the accounting equation. In the accounting equation, we can separate assets into ‘current assets’ and ‘non-current assets’ and liabilities into ‘current liabilities’ and ‘non-current liabilities’.

Ann’s business as at 15 July 2022 now incorporates the headings shown in figure 3.9.

As at 15 July, Ann’s business has current assets of bank $12 510, and inventory $16 100 that she expects to sell at a profit and convert to cash within the next 12 months. The business also has non-current assets of motor vehicles $33000 and computers $11 990, both of which are expected to be in use for more than 12 months. Ann’s share of the business is $51 000. This is shown as owner’s equity, in the capital account.

Assets Current Assets Bank Inventory Non-current Assets Motor Vehicles Computers LA 12 510 16 100 28 610 33 000 11.990 44 990 73 600 = Liabilities Current Liaiblities Accounts Payable Non-current Liaiblities Bank Loan 6 600 16 000 22 600 Owner's Equity Capital $ 51 000 51 000