Chapter 14, Problem P14.43BPGB

To determine

The liabilities of the business entity is apportioned among three groups i.e. Current liabilities, Long-term liabilities and Owner’s Equity on the basis of period in which it becomes due and source of funds (i.e. outside liabilities and Owner’s contribution).

The Various liabilities to be reported under which head of liabilities in the Balance sheet need to be determined and Debt-equity ratio to be computed.