أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
you see in principle closing capitals plus drawings-fresh capital-opening capital=p & L-adjustments= which can be called as net P & L too
also In such a case, subtract the capital injection from the company's assets to obtain an accurate reading of the company's profits. Likewise, drawings from capital distort the profit and loss.
Add back the capital withdrawal amount for an accurate reading of the company's profit or loss. Therefore, the formula for determining profit and loss is capital at the end of the period plus drawings minus new capital contributions less beginning capital.
