Comparison Method
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MS: Kaedah Perbandingan · EN: Comparison Method · ZH: 比较法
Meaning
The Comparison Method finds net profit or loss by comparing opening capital with closing capital. The formula is: Net profit = (Closing capital - Opening capital) + Drawings - Additional capital. It is used when records are too limited to prepare a full Profit and Loss Account.
Example
Warna Shop's opening capital is RM20,000 and closing capital RM26,000. The owner's drawings are RM4,000 with no additional capital. Net profit = (26,000 - 20,000) + 4,000 - 0 = RM10,000.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5