Some doubts about calculations: 1) Profit or Loss (P&L) at the end of period without inflation would be: $150,000 - $68,000 - $50,000 - $30,000 = $2,000 (benefit) 2) With inflation adjustment, my opinion is no considered adjustments on assets and liabilites, just capital could be adjustment with 10%; so: $150,000 - $68,000 - $55,000 - $30,000 (at the end of period) = Loss of $(3,000) I think ASSETS AND LIABILITIES are closing at the end of period, so don't be adjustment by inflation rate Please confirm. Thanks
Some doubts about calculations:
1) Profit or Loss (P&L) at the end of period without inflation would be:
$150,000 - $68,000 - $50,000 - $30,000 = $2,000 (benefit)
2) With inflation adjustment, my opinion is no considered adjustments on assets and liabilites, just capital could be adjustment with 10%; so:
$150,000 - $68,000 - $55,000 - $30,000 (at the end of period) = Loss of $(3,000)
I think ASSETS AND LIABILITIES are closing at the end of period, so don't be adjustment by inflation rate
Please confirm. Thanks
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ISSUE
$50,000 (initial capital) + $30,000 (new capital contribution) + X (profit or loss for the period) = $150,000 (assets) - $68,000 (liabilities) => X = ¿¿¿$38,000???
To me this result is $2,000 of utility by ASSETS = LIABILITIES = $150,000 (double entry accounting principle).
Please check it. I don´t understand your calculation
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