UK Statement Of Changes In Owners Equity question


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Hi there

I am wondering if anyone can help me to find how to calculate the opening equity (beginning of year balance) when preparing a statement of changes in owners equity.

The problem I have is that I only have the summarised (end of year 31/12/20XX) statement of financial position and summarised income statement.

The only working I have in regards to preparing the SOCE is: Closing equity = Opening Equity + profits for year - dividends.

But i can't seem calculate or find the opening equity.

I have attached an image file to show my confusion.

If the quality is a little poor, the opening equity for H company is 30900. How is this calculated from the above two statements?

Hope you can help
Thanks
 

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Triest123

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Hi there

I am wondering if anyone can help me to find how to calculate the opening equity (beginning of year balance) when preparing a statement of changes in owners equity.

The problem I have is that I only have the summarised (end of year 31/12/20XX) statement of financial position and summarised income statement.

The only working I have in regards to preparing the SOCE is: Closing equity = Opening Equity + profits for year - dividends.

But i can't seem calculate or find the opening equity.

I have attached an image file to show my confusion.

If the quality is a little poor, the opening equity for H company is 30900. How is this calculated from the above two statements?

Hope you can help
Thanks
Closing equity = Issued Capital b/f + Retained Earnings b/f + Increase / (Decrease) in
Issued Capital + Profits for year - Dividends.

We can find out the opening equity from the closing equity if there is no change in issued capital during the current year.
 

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