Saturday, April 24, 2010

What is the Capital Statement


Capital statement is the document which presents the opening balance of the capital at the first line, and then any kind of addition in shape of investment or profit earned during the accounting period is added in the next line arriving at the total balance of capital. Deductions in form of withdrawals or loss of the business are then subtracted from the total balance of the capital arriving at the final balance of capital at the end of the accounting period.


Capital Statement
                                                                 
            Capital, 1st July, 2008……………………….              35,000.00
            Additional investment during the year………       6,000.00
                        Total…………………………………                                    41,000.00
            Net loss for the year…………………………   8,000.00
            Withdrawals….......................……………….   3,600.00       
            Decrease in capital…………………………..                          11,600.00
            Capital, 30th June, 2009……………………..                                      29,400.00

0 comments:

Post a Comment