Question

why we dont use the equity found in the satatement of owner equity for the next month of the business périod and we use the owner capital for the begining month in the balance sheet for the next month exemple. we have owner capital for the begining of the périod 144.000.. we found the amount of the statement of owner equity in 30 novembre 145 730 and we use it in the balance sheet of novembre .. and when we do the satatements of the month of décember in the trial balance de use the 144.0000 and the owner equity satatement de use the same amount who we dont use the amount de found in november   145730 ??? de

Answer 1

Answer

We will use the amount of 145730 in December Trial Balance which we have found in the November statement of Owner’s Equity if we close all our revenues and expenses and also withdrawals made by the owner but if we don’t close all our revenues and expenses and carry forward these revenues and expenses in the next month trial balance then we will use the beginning balance of Owner’s equity i.e. 144,000. Therefore when we will not show balance of revenues and expenses related to November then we will show 145730 and when we show the balances of revenues and expenses related to November then we will show 144000