Question

The following information was obtained from the books of Sindo Limited on 31 December 2015:

Details	Ksh
Capital	24,000
Stock	1,500
Debtors	2,000
Machinery	20,000
Cash	4,000

Determine the total liabilities of the business. 

Answer 1

Total asset = 20,000+ 1,500 +2,000 +4,000 = 27,500
Capital = 24,000
Assets = Capital + Liabilities
Liabilities = Assets-Capital
=27,500-24,000) 
=3,500