Under single entry system, the amount of opening stock can be ascertained by preparing a
Answers
Answer:
It is prepared under the single entry system in order to find out the amount of opening or closing capital of the business. According to net worth method, profit or loss of the business is determined by making comparison between the capitals of two dates of a period. Statement of affairs is prepared as balance sheet
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Answer:
Under single entry system. statement of profit and loss and statement of affairs are used to determine the opening capital of owner
Explanation:
Correction - Here opening capital can be determined not opening stock
Under single entry system. statement of profit and loss and statement of affairs are used to determine the opening capital of owner
Statement of profit and loss as:
Closing capital - Drawing - Profit + Loss - Additional Capital = Opening capital
As per Statement of Affairs:
Add all the opening balance amount of assets - opening balance of liabilities= Opening capital
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