Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 7 - No. 28)

How is equity and profit or loss for the year calculated?

Opening equity + closing equity = profit or loss

Closing equity - opening equity = profit or loss

Opening equity - closing equity = profit or loss

Equity + profit or loss = opening equity

Profit or loss is calculated by subtracting the opening equity from the closing equity.