Page 51 - PowerPoint Template

The elements involved in owners'

equity:

 Capital

 Consists of assets in the business by the

owners.

 It will add the owner's equity.

 Drawing

 Owner issuing asset (cash or merchandise) for

its own use.

 The effect will be to reduce the value of owners'

equity.

 Profit

 Expenditure

 The effect will reduce the owner's equity.

 Income

 The effect will add value to the owner's equity.

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