FAR1.11 Matching of Revenues & Expenses

Question 1

Ending capital balance

Answer 1

Opening capital balance + Additional capital bought in + Income for the period (-) Drawings made during the year

Question 2

CASH BASIS TO ACCRUAL BASIS

ACCRUAL BASIS TO CASH BASIS

Answer 2

CASH BASIS TO ACCRUAL BASIS
INCREASE IN LIABILITY
DECREASE IN ASSET
[SUBTRACT]

DECREASE IN LIABILITY
INCREASE IN ASSET
[ADD]