The ending balance of owner's capital is calculated as
A) Owner's capital account balance plus profit minus the withdrawals account balance
B) Owner's capital account balance minus loss plus the withdrawals account balance
C) Profit minus the withdrawals account balance
D) Assets plus liabilities
E) None of these answers is correct.

Question

Quizplus · Accepted Answer

The ending balance of owner's capital is calculated by adding the beginning balance of the owner's capital account to the profit earned during the period and subtracting the withdrawals made by the owner during the period. This is represented by the formula: Owner's capital account balance + Profit - Withdrawals account balance = Ending balance of owner's capital.

The Ending Balance of Owner's Capital Is Calculated as