The initial diagram

SOLE TRADER

Owners equity (capital) : Resources which are invested by the owner

Rs 3,000,000

Clothing shop (clothes , shoes , Accessories)

 Display equipment = Rs150,000  Bank loan = Rs 300,000

 Inventory (sticks/Goods) = Rs 1000000+200000  Buying inventory = Rs200,000 on
 Fixtures and fittings = Rs 300000 credit
 Cash Register = Rs 30000
 Motor Vehicle = Rs 120,000
 Furniture = Rs 50,000
 Computer equipment = Rs 40,000
 Cash at bank = Rs 200,000 + 300,000

TOTAL = Rs 3,000,000
Assets = The resources = The resource which are owned and controlled by
the business.

Liabilities = This refers to the value of resources invested into the business
by . Therefore , the busines owes these outsiders

Owners Equity = Rs 3,000,000 / Assets= Rs 3,500,000 / Liabilities

Assets = Owners equity + Liabilities