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EQUITY

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On the Jewelry Shopkeeper balance sheet, the Total Equity is the calculated balance of Assets minus Liabilities. The Retained Equity is the difference between the Total Equity as calculated above and any individual equity accounts that you might have posted.

 

Example: If you have Total Assets of $100 and Total Liabilities of $60, the Total Equity is calculated to be $40. Now, if you have created equity accounts (beginning with 3) such as Retained Earnings As of 12/31/9x for a figure of $17 and you have a Common Stock Dividends of $5, then you have itemized equity accounts totalling $22. The Retained Equity is then calculated as Total Equity minus Itemized Equity = $40 minus $22 = $18

 

If in the above example, you did not have any values in any Itemized Equity accounts, then the Retained Equity would equal the Total Equity.