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Topic 7
Accounting for Equity
 
Financial Statement of Sole Trader 
Presentation of equity in the balance sheetExample:Kingslee EnterpriseBalance Sheet (partial)at December 31, 2007
Owner’s Equity: RMS. Kingslee, Capital 50,000Add: Retained Profits 22,000Less: Drawings ( 2,000)Total Owner’s Equity 70,000======
 
Financial Statement of Partnership
Presentation of equity in the balance sheetExample:
R & R PhotographyBalance Sheet (partial)at December 31, 2007Owner’s Equity: Ian Rigg Sara Richmond TotalRM RM RMCapital 28,000 24,000 52,000Add: Retained Profits 12,400 9,600 22,000Less: Drawings ( 7,000) ( 5,000) (12,000)Total Owner’s Equity 33,400 28,600 62,000====== ====== ======
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