SCE--Statement of Changes in Equity

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Statement of Changes in Equity

Statement of Changes in Equity - Financial Statement

Definition:

The Statement of Changes in Equity summarizes changes in owner's equity over a period. Required under Philippine Accounting Standards (PAS) 1, it reflects the increase in an enterprise's net assets.

Sample Problems:

1. ABM Company

  • Owner: Mr. Yee
  • Year Registered: 2018
  • Investment: P50,000
  • Net Income: P20,250
  • Withdrawal: P5,600
  • Question: What is the balance of Mr. Yee's capital at the end of 2018?

2. Mike's Trading

  • Owner: Ms. Wang
  • Year Registered: 2018
  • Capital Balance (Jan 1, 2018): P25,500
  • Investment: P75,800 (inventory)
  • Withdrawal: P10,200
  • Ending Capital Balance: P106,360
  • Question: What is the net income for 2018?

3. Linda's Marketing

  • Owner: Ms. Chui
  • Capital Balance (Jan 1, 2019): P155,000
  • Additional Investment: P86,900 (supplies)
  • Net Income: P55,250
  • Ending Capital Balance: P191,950
  • Question: How much was Ms. Chui's withdrawal for 2019?

4. Greece Restaurant

  • Owner: Mr. Cullen
  • Year Registered: 2019
  • Capital Balance (Jan 1, 2019): P88,000
  • Net Income: P57,850
  • Withdrawal: P32,220
  • Ending Capital Balance: P228,630
  • Question: How much was Mr. Cullen's additional investment for 2019?

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