Balance Sheet: How to calculate 'opening capital'?

Bexflower | 07:19 Sat 07th Apr 2012 | Business & Finance

4 Answers

In this example balance sheet in page 8: http://www.osborneboo...ive_accounting_06.pdf

How was the opening capital calculated?

Also, am I right in thinking 'opening capital' is the same as 'Owner's capital/equity'?

Thanks.

selling hotel

Tax Return 2011-2012

Answers

1 to 4 of 4

Best Answer

No best answer has yet been selected by Bexflower. Once a best answer has been selected, it will be shown here.

For more on marking an answer as the "Best Answer", please visit our FAQ.

Bexflower

Question Author

Any ideas?

barney4444

Lost me.. but I can lift heavy weights!! Good luck..

Bexflower

Question Author

@barney

Thanks for looking anyway!

twix123

Are you still not asking your tutors for help?

Page 7 explains the meaning of Capital. Page 12 shows how it is calculated at the year end. You have to accept the figure as stated as being the Opening Capital, but you should understand that it is comprises the owner's original investment together with the accumulated Profits and Losses over the trading years, that haven't been taken out of the business.

1 to 4 of 4

Do you know the answer?