Opening Capital
Book a Trial Class
One-hour paid trial · Same-day reply · from RM50/hr
MS: Modal Awal · EN: Opening Capital · ZH: 期初资本
Meaning
Opening Capital is the capital at the start of an accounting period, that is, total assets minus total liabilities at the beginning of the year. It is the starting point in the comparison method. Opening capital is usually obtained from the opening Statement of Affairs.
Example
On 1 January, Seri Boutique has assets of RM18,000 and liabilities of RM3,000. Opening capital = 18,000 - 3,000 = RM15,000.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5