malak25
Feb 15, 2008, 10:41 PM
how do you determine the ending balance of a capital account?
malak25 Feb 15, 2008, 10:41 PM how do you determine the ending balance of a capital account? morgaine300 Feb 15, 2008, 10:49 PM Four things affect capital: Revenues (+), Expenses (-), Investments (+), and Withdrawals (-). You will need to know those four things. Therefore, Beginning Balance +Investments +Revenues -Expenses -Drawings =Ending Balance Remember that Revenues less Expenses = Net Income. So you may need to add Net Income (or subtract Net Loss) rather than doing those separately, depending on the information you're given. Copyright ©2005-, Ask Me Help Desk
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