Equity

Equity is what would be left for the shareholders if every asset were sold and every liability paid. It is the root group on the Balance Sheet beneath Liabilities, and it takes no postings: Share Capital, Share Premium, Retained Earnings, the reserves under Other Components of Equity and Non-controlling Interests each have their own ledger and the group adds them up. The Office of the Company Registrar expects paid-up capital and retained profit to be shown separately, and banks read the equity total to judge how much of the business is the owners' own money. In the demo books Equity is Share Capital Rs 25,00,000 plus the profit kept since Shrawan 1, 2083. Negative equity means losses have eaten it.

Equity = Assets - Liabilities = Share Capital + Share Premium + Retained Earnings + Reserves + Non-controlling Interests

1. 01Go to Accounts Setup > Chart of Accounts and expand Equity.
2. 02Click a ledger such as Share Capital to open its General Ledger.
3. 03Open Financial Reports > Balance Sheet, set the date, and read the Equity total at the bottom.
4. 04Check that Assets equals Liabilities plus Equity.
5. 05Open Financial Reports > Profit and Loss Statement; the year's profit is what Retained Earnings receives at year end.

Never post here. Use Share Capital for money shareholders put in and let BRAccount roll profit into Retained Earnings at year end.

Yatra For Fun's Equity is Share Capital Rs 25,00,000 plus the profit kept since Shrawan 1, 2083.