A partnership's Balance Sheet shows: Capital accounts ₦500,000; Current accounts (credit balances) ₦80,000; Loan from partner ₦120,000; Trade creditors ₦60,000. What is the total of partners' equity in the business?

Partners' equity comprises the capital accounts and current accounts only. Equity = ₦500,000 + ₦80,000 = ₦580,000. A loan from a partner is treated as a liability of the firm (similar to a third-party loan) and is not included in partners' equity, nor are trade creditors.