Assume that for one accounting period there were contributions of capital of $60,000, assets increased by $90,000, liabilities increased by $40,000, revenues were $80,000 and net profit was $20,000. how much the owner must therefore have withdrawn?
Answer:
A= L + OE
A= L +
OE(Capital-Withdraws+Revenue-E.
90,000=L (40,000) + OE
(60,000(Capital)-x(withdraws)+.
Income Statement
Rev.-Expenses(y)= Net Income
80,000-y=20,000
(Expenses) y=60,000
90,000(Assets)=40,000(Liabilit.
+Revenue(80,000)-(60,000)Expen.
90,000=40,000+60,000-x+ 20,000(80,000-60,000)
90,000=120,000-x
x=30,000
90,000=120,000-30,000
90,000=90,000
A=L+OE
Owner Withdraw=30,000
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