The founders of a small business invest R800,000 into their business. At the end of their first year, the business has assets of R850,000 and losses of R100,000. Determine the following:

• The value of the founders equity at the end of the first year.
• The value of the businesss liabilities by applying the accounting equation at the end of the first year.

For each calculation, show the steps that you take to reach your answer. Start writing here: