Example of an Owner Equity Statement

Owner’s equity represents the value of your business after all its obligations have been met.

Example of Owner Equity Statement:

Example of Owner Equity Statement

Your owner’s equity generally reflects the amount of capital the owner(s) has invested plus any profits the business generates that is in turn reinvested into your business.

This reinvested income is called retained earnings.

The statement of owner’s equity reports the changes in the owner equity for a specified period of time. It is also called a Retained Earnings Statement.

It is used by mostly larger businesses. Most small businesses report their retained earnings on their balance sheet.

If you do need to prepare one, it is usually prepared after the income statement because the net income or net loss for the period must be reported on this statement.

Similarly, it is prepared before the balance sheet, since the owner’s equity at the end of the period must be reported on the balance sheet.

Because of this, the statement of owner’s equity is often viewed as the connecting link between the income statement and balance sheet.

Here is an example of an Owner's Equity Statement:

Your Business Name

Statement of Owner's Equity

For Month Ended October 31, 20xx

Jane Smith, capital, October 1, 20xx


Investment during the month 1,000.00
Net income 2,000.00
Withdrawals during the month 2,000.00
Jane Smith, capital, October 31, 20xx $6,000.00

Free Mileage Log...

Click on image above for more details.

Spreadsheet Reviews...

"I absolutely love the spreadsheets!!  Thank you so much! They are exactly what I needed."

Becky from Back to Natural

"Thank you so much. I have been stressing about doing this accounting stuff for my husband. Quickbooks was too complicated for his small business and these spreadsheets are just what I was looking for!!!"

Josi Michael

"I love your accounting spreadsheets- thank you!"

Sandra from the UK

"As a small business owner my expertise has always been in marketing and customer service. I have struggled with many different options for my bookkeeping.

Vickey's basic accounting help and ledgers have made my business so much easier!"

Kelly Howard

"Thank you for your free spreadsheet! It has helped me tremendously to track daily sales and get a grip on the full scope of what revenues are coming in and my expenses."

Gabby of Gumdrop Swap

Business mileage can be a very good deduction for your small business.

It can also be a nightmare, if all the IRS required information is not included in your mileage log.

See what must be included and get a free mileage log!