Solutions Manual to accompany Accounting 9e by Hoggett et al
Full file at https://testbankuniv.eu/Accounting-9th-Edition-Hoggett-Solutions-Manual
Exercise 2.4
Determining profit from equity balances
Equity balances for Sen Widyaya appearing in the balance sheets of Widyaya’s Window Washing Services as at 30 June 2016, 2015 and 2014 are set out below:
EQUITY Sen Widyaya, Capital
30 June 2016
30 June 2015
30 June 2014
$27 300
$30 000
$28 000
During 2014–15, Sen withdrew $25 000 for personal use and also contributed additional capital of $8000. During 2015–16, he withdrew $10 000 capital from the business, and withdrew $15 000 cash for his own use in anticipation of profits.
Required Determine the profit/loss earned by the business in each of the 2 years ended 30 June 2016 and 30 June 2015.
WIDYAYA’S WINDOW WASHING SERVICES Profit for years ended 30 June
2015
2016
Beginning Capital
$28 000
$30 000
8 000
—
—
(10 000)
(25 000)
(15 000)
19 000
22 300
$30 000
$27 300
+ Additional Capital Contributions – Withdrawals of Capital – Drawings Profit Ending Capital
© John Wiley & Sons Australia, Ltd 2015
Full file at https://testbankuniv.eu/Accounting-9th-Edition-Hoggett-Solutions-Manual
2.16