Another excellent video! I was used to equity statements having me write the investments + net income/loss number twice overtop of one another, so I did not know why it suddenly said that I was doing this incorrectly
It's not necessarily optional, but investments are not always going to happen during an accounting period. An owner may go a while before investing more in the business, so during those periods without any investments, they will not appear on the statement.
If that's the case, then there is nothing being added on the statement. It would start with the beginning capital balance, then you would subtract owner's drawings and the net loss in order to find the ending capital balance.
Hi..can I know how to calculate the equity when expenses of the year,drawings,additional capital,income is given...its the same way right ? Like first add the opening capital,income, and substrate from drawings,expenses right ??
This is one of the few very clear and easy to understand videos that get directly to the point.
Thank you for the videos! I just finished my homework, you are the best teacher! Really helpful and simple to understand.
Glad it was helpful!
Awesome, simple, and to the point.
Another excellent video! I was used to equity statements having me write the investments + net income/loss number twice overtop of one another, so I did not know why it suddenly said that I was doing this incorrectly
Thank you! I just finished my Activity 😊 Please do a tutorial about: How to get the partnership's statement in partner's equity 😢
is adding investments optional? it sounded optional
It's not necessarily optional, but investments are not always going to happen during an accounting period. An owner may go a while before investing more in the business, so during those periods without any investments, they will not appear on the statement.
What if there's a loss instead of profit. Would you write it as
Less: Loss xxx
Correct. The Net Loss would be listed under the "Less" section along with any Owner's Drawings you may have in that period.
What if its a net loss and there is no investments made? How do u get the ending capital then? Pls answer
If that's the case, then there is nothing being added on the statement. It would start with the beginning capital balance, then you would subtract owner's drawings and the net loss in order to find the ending capital balance.
Hi..can I know how to calculate the equity when expenses of the year,drawings,additional capital,income is given...its the same way right ? Like first add the opening capital,income, and substrate from drawings,expenses right ??
If you're given each piece, you'll find your ending capital balance by:
Beginning Capital + Additional Investment + Revenues - Drawings - Expenses
@@stevenforce3344 noted.Thanks
Marvelous!!
Thank you!