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System
System Posts: 100,534 🤖 Admin 🤖
edited 10:30AM in AAT student discussion
Can anyone explain how to calculate opening capital?<BR><BR>This is the last thing i have to revise and my son is being the baby from hell tonight, and i cant seem to take it in from the book.<BR><BR>Any help would be appreciated.<BR><BR>Thanks <BR><BR>K

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  • System
    System Posts: 100,534 🤖 Admin 🤖
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    To calculate opening capital, you'll usually be provided with values for each asset and liability at the opening date. Then it's just a case of using the accounting equation:<BR><BR>Capital = assets - liabilities<BR><BR>So, just list down and total assets, same with liabilities, and take one from t'other!<BR><BR>Best of luck! <img src="i/expressions/face-icon-small-smile.gif" border="0"><BR><BR>Andrew Harrington
  • System
    System Posts: 100,534 🤖 Admin 🤖
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    I havenâ??t been taught how to do this, I hope capital will be shown on the previous yearâ??s balance sheet. If it isnâ??t, I would prepare the BS as much as possible.<BR><BR>When you have a net assets figure you know that this is = opening capita l+ capital introduced in period + profit (figure form P&L) â?? drawings<BR><BR>So if you know all the other values the opening capital is the balancing figure. I hope that makes sense and is correct, otherwise, Iâ??m stuffed!
  • System
    System Posts: 100,534 🤖 Admin 🤖
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    <br><br><< <i>I hope that makes sense and is correct, otherwise, Iâ??m stuffed!</i> >><br><br><BR><BR>Looks good to me, if the question is asked in this way.<BR><BR>Good luck! <img src="i/expressions/face-icon-small-smile.gif" border="0"><BR><BR>Andrew Harrington
  • System
    System Posts: 100,534 🤖 Admin 🤖
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    Thanks!<BR><BR>Good luck tomorrow too! Just remember, by this time tomorrow it'll be well over and we'll all probably be so hammered we'll have forgotten it all anyway! Ha
  • System
    System Posts: 100,534 🤖 Admin 🤖
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    Very nice of you to wish me good luck, Tango, but I have the easy job - I'm a tutor, so all I have to do is have a look at the papers and listen to everybody moaning afterwards!
  • System
    System Posts: 100,534 🤖 Admin 🤖
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    Everyone needs a bit of luck, student or tutor, although granted that students probably need a great deal more than the tutors do right now!! Thanks for your help!<BR><BR><img src="i/expressions/face-icon-small-smile.gif" border="0">
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Incomplete Records

    <BR><BR>Thanks for all your help, greatly received.<BR><BR><BR>at last my son has gone to sleep, so it looks like a long night ahead revising!!!!<BR><BR><BR>good luck to every one.<BR><BR>One thing to look forward to, is this time tomorrow we can all have a drink and forget untill september about studying!<BR><BR>K

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