Sole Proprietor – Balance Sheet / Statement of Financial Statement
1. Balance sheet has only one capital account
2. Profit (or loss) added (or subtracted) to capital account (in balance sheet)
3. Net assets and total equity has to tally ($14,200)
3. The profit is from the income statement
4. Note that the title is “Statement of Financial Position as at ….” because the value of the assets / liabilities are captured AS AT the year end date.
5. This is in contrast to income statement / profit and loss statement which captures the whole year activity.
3. Net assets and total equity has to tally ($14,200)
3. The profit is from the income statement
4. Note that the title is “Statement of Financial Position as at ….” because the value of the assets / liabilities are captured AS AT the year end date.
5. This is in contrast to income statement / profit and loss statement which captures the whole year activity.
