Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 20 - No. 47)
What are the typical components of owner's equity for a sole trader?
Assets, liabilities, and capital.
Capital contributions, drawings, and net profit/loss.
Revenue, expenses, and capital.
Assets, revenue, and expenses.
Explanation
Owner's equity components in a sole trader business usually include the original capital invested, drawings (withdrawals), and the profit/loss for the period.
Comments (0)
