28 February 2013	28 February 2012
Non Current assets Current Assets Non Current Liabilities Current Liabilities	396 000 208 000 193 000 24 000	380 000 140 000 200 000 32 000

The capital contribution was unchanged during the financial year ended 28 February 2013. The proprietor did not make any drawings during this period. Which one of the following amounts represents the net profit for the year ended 28 February 2013?

R388 000
R100 000
R 84 000



This is really confusing me, please help

First you have to get total assets and total liabilities. So for total assets simply add your non-current and current assets together. For total liabilities simply add your non-current liabilities and current liabilities together. You need to do this for 2012 and for 2013.

Now you need to know the basic accounting equation. Which is:
Assets = Liabilities + Owners Equity

This formula can be rewritten to find owners equity as:
Owners Equity = Assets - Liabilities

You need to find owners equity for 2012 and 2013.

Now you have to account for the change in owners equity from 2012 to 2013.

Since there was no drawings(withdrawals) or additional investments(capital contribution) made in the year the change in owners equity is Net Profit, so simply take your owners equity in 2013 minus the owners equity in 2012 to get your net profit.