QUESTION TWO ACCOUNTING THEORY 12 MARKS Geraldine runs a business from her home as a sole trader. She sells clothes she makes on-line and has one employee. She has called her business The Clothes Horse. tttttttttt 6 The Clothes Horse got a loan from the bank to buy the vehicle. The loan is classified as a liability in the Statement of Financial Position (Balance Sheet). + Complete the table below to show how the loan meets the definition of a liability The loan must be repaid plus interest. Obligation to transfer an economic resource Past event / past transaction (3 marks) 3