In this task you have to identify asset/liability/Equity for each item.If it is asset or liability you have to mention its type in the second column For items of expense or revenue you have to classify under equity and state whether it increses or decreases equity in the third column Identity assets and liabilities/equity Assets/liability/equity Type of asset/ liability Equity increase or decrease Bank loan ( 5 years) Accounts payable Liability Current Liability Accounts receivable Assets Current Asset Cash Assets Current Assest Furniture Assest Fixed Assest share capital advance income received Rent paid Sales revenue Equity Increases share capital advance income received Rent paid Sales revenue Equity Increases Salary paid in advance Telephone charges Stock of printer ink (supplies) Stock of raw materials (inventory) Short term investments