Owner's Equity

Classification of Accounts and the Accounting Equation

MS: Ekuiti Pemilik · EN: Owner's Equity · ZH: 业主权益

Meaning

Owner's equity is the owner's claim on the business assets after deducting all liabilities. It consists of capital invested plus accumulated profit, and is reduced by drawings and losses.

Example

For example, if Maju Jaya Enterprise has assets of RM56,000 and liabilities of RM16,000, then owner's equity is RM40,000 (RM56,000 - RM16,000).

Source: DSKP KSSM Prinsip Perakaunan Tingkatan 4

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