Glossary
Equity
Equity is what is left for the owner from the shop assets after all its liabilities are paid.
What it means for a shop owner
It equals assets minus liabilities. It rises with new capital and profits, and falls with losses and owner draws. Steady growth means the shop is truly earning.
A worked example
Assets of 8,000 and liabilities of 3,000 leave equity of 5,000.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes