Statement of Owner’s Equity - How To Find Out Total Owner’s Equity

This statement of owner's equity shows the changes in Owner’s Equity over the accounting period due to the profitable activities of the owners of the business. It is prepared to calculate the value of Owner’s Equity or Capital Account in case of Sole Proprietorship while Statement of Changes In Equity is prepared in case of Companies or Corporations businesses.

Statement of Owner’s Equity Format Example

                                                                                     Rs.

Opening Capital                                                          XXX

+ Add Net Income / Net Profit                                     XXX

+ Fresh Capital Introduced                                          XXX

- Drawings                                                                   XXX

                                                                              ________

Closing Capital / Owner’s Equity                                XXX

                                                                              ________

Opening capital is the ending balance of previous accounting period but the beginning balance of the current accounting period. Net profit or (Net Loss if suffered) for the period is added or substracted from opening capital. Any fresh capital or new capital introduced by the sole owner during the accounting period is added. Any goods or cash withdrawn by the sole proprietor from the business for his own or personal use / private use is Drawings is deducted to arrive total owner's equity. Finally, we calculate ending capital / closing capital or total owner's equity which will go to the Balance Sheet under Liabilities and Owner’s Equity side or right side.