incomplete records accounting equation

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
:(
Hi

I am going mad trying to do this
I have tried following the accounting equatioon to get the net profit or loss but it makes no sense to me, if any one has any advice it would be much appreciated

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:incomplete records accounting equation

    Hi beccy

    What are you actually struggling with? Is there a particular question we can help you with?

    Net assets = owners funds

    Net assets = fixed assets + current assets - capital

    Owners funds = capital b/fwd + capital introduced + profit/- loss - drawings

    I think... been a while since I did this!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:incomplete records accounting equation

    Hi

    Im doing the distance learning and am finding one particular section of incomplete records really confusing.
    When I try to follow the equation (even when i have the answer) it does'nt come to what they have.If I show you an example I would really appreciate you explaining it.

    Calculation of net profit
    Opening capital 16000
    Capital introduced 24000
    =40000
    Net loss(bal fig) (4900)
    35100
    Drawings (14300)
    Closing capital 20800

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