Assume the opening balance of equity (01/07/2017)is $1,500,000. During 2017/18, there was a share issue of $540,000, dividends declared of $280,000 and a profit for the year of $75,000, What is the equity balance on the 30/06/2018?

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Quizplus · Accepted Answer

The closing balance of equity on 30/06/2018 can be calculated as follows: Opening balance + Share issue + Profit for the year - Dividends declared = $1,500,000 + $540,000 + $75,000 - $280,000 = $1,835,000.

Assume the Opening Balance of Equity (01/07/2017)is $1,500,000