How do I calculate the Net Income if I'm only given the start and ending capital balance? Ex. Start capital is 168,000 - end capital is 198,000. Using the Accounting equation of assets = liability + Equity?
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How do I calculate the Net Income if I'm only given the start and ending capital balance? Ex. Start capital is 168,000 - end capital is 198,000. Using the Accounting equation of assets = liability + Equity?
Use the following equation, fill in the available figures and you get the answer.
Ending capital + Drawings - Additional investment - Beginning capital = Profit or loss
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