Extra $100 after borrowing and shopping I took \$1000 from my friend James and \$500 from Bond.
While walking to the shops I lost \$1000 so now I only have \$500.
I did some shopping, spending \$300 so now I have \$200 left.
I gave \$100 back to James and \$100 back to Bond.
Now my liabilities are \$900 for James and \$400 for Bond, so my total liabilities are \$1300.  
Total liabilities + Shopping = \$1300 + \$300 = \$1600, but I only borrowed \$1500.
Where did the extra \$100 come from?

To what purpose are you adding Total Liabilities with expenses? 
You borrowed initial 1500 , returned 200 , thus your total liabilities =1300.
Your expenses are 300 (shopping) + 1000 (lost) = 1300
Thus Total Liabilities == Expenses  :  1500-200 == 300 + 1000
