End of period balances for M1 in the Statement of Changes in Equity, before adjustments, corresponding to transactions carried out during the period will appear as shown in the Exhibit below, as it can be seen in the Accounting System > Group 3 > WorkSheets M1.
We have now proceeded further and entered all transactions for the period in the Statement of Changes in Equity and proceed with the totaling of entries to obtain the balance of this statement, in the case of the example the first month of operations.
The Exhibit below shows M1 end of period (31.1.Y1) balances in the Statement of Changes in Equity corresponding to transactions carried out after adjustments for prepayments and accruals. In this example it can be seen that first month of operations has produced a decrease of capital of
Subscribe today and learn the fundamentals
It seems you don't have access to the exclusive content of The Course.
In order to gain access to the content of The Course you will have to register with EntreprenAble. Membership with EntreprenAble will also give you access to our interactive Business Game and Accounting Simulations.
Subscribe today and get:
- Unlimited website access to The Course
- Optimized view for Desktop, Tablet and Mobile devices
- Free 7-day, no obligation trial - normally £15
Test-drive the system for free