Payed hospital bill is it asset or liability

A hospital bill that has already been paid is neither an asset nor a liability. An asset is something the business owns that has future economic value. A liability is something the business owes to an external party. When a hospital bill is paid, the obligation is settled. In the context of the previous problem (transaction h), paying the owner's wife's hospital bill from the business is considered a drawing, which reduces the owner's capital. It is not an asset because the business does not gain a future economic benefit, and it is not a liability because the debt has been cleared. 3 done, 2 left today. You're making progress.