Increase Net Worth Method of Single Entry System

Increase Net Worth Method of Single Entry System

According to this method, the profit or loss determined of the business by comparing the capitals (Capital at the beginning as well as at the end) of the business on two different dates. This system is also known as Capital Comparison Method.

Adjustment of Drawing, introduction of capital, interest on capital , gain or loss on sale of fixed asset etc necessary for calculating profit under net worth method.

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