Lecture 5 Week 6

Sharecapitalrepresentsretainedprofitsor

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Unformatted text preview: d decreased by the drawings • Prepared to verify the equality of debits and credits • Confirms that only permanent accounts have balances • • • • 11 12 3 4/04/2013 ACCOUNTING FOR A COMPANY • Owners are referred to as shareholders • Owners’ interests are called share capital • Not all profits/losses are distributed to shareholders, may be retained/accumulated • Share capital represents retained profits (or accumulated losses) + share of assets • Note profits are distributed as dividends INTELLECT MANAGEMENT SERVICES LTD Statement of Changes in Equity For the year ended 31 December 2013 Share Capital, 1 January 2013...
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