Balance the statement of financial position using the accounting equation

Steps:

• Total liabilities = current liabilities + non-current liabilities = 8,000 + 15,000 = 23,000
• Net partners' equity = capital accounts - debit current accounts = 36,000 - 6,000 = 30,000
• Total liabilities + equity = 23,000 + 30,000 = 53,000
• Current assets = total assets - non-current assets = 53,000 - 42,000 = 11,000

Why C is correct:

• Debit current accounts reduce net equity per partnership accounting, ensuring Assets = Liabilities + Equity

Why the others are wrong:

• A: Ignores full equation, possibly subtracting liabilities from non-current assets alone
• B: Matches debit current accounts value, treating it as an asset without balancing
• D: Adds all liabilities to non-current assets, overlooking equity adjustment

Final answer: C