Chapter 1, Problem E1.35E

To determine

Statement showing Owner’s equity:

TheStatement showing Owners equity is prepared after the preparation of income statement for finding the amount of Owner’s claim in the business in the form of capital at that end date of the period. This statement shall be prepared by taking the capital amount at the beginning of the period and enhanced with the additional capital introduced and amount withdrawn. The net income or loss (as computed in income statement) shall also be added or deducted (as the case may be) from the above amount to arrive at the Amount of capital balance as on last date of the period, which shall be shown as liabilities in Balance sheet.

Requirement1:

TheStatement of Owner’s equity for the year ending Dec for Drought Design Studio.