The total assets and the total liabilities of a business at the beginning and at the end of the year appear below.During the year, the owner had withdrawn $65,000 for personal use and had made an additional investment of $40,000 in the business.

AssetsLiabilities

Beginning of year$305,000$195,000

End of year350,000240,000

What is the amount of net income for the year?

< solution >

$305,000 - 195,000 = 110,000 Beginning Owner's Equity

350,000-240,000= 110,000 Ending Owner's Equity

Beginning owner's capital -withdrawals +additional investment +Net income (loss)=Owner's capital at the end of the period

110,000-65,000+40,000+NI (NL)=110,000

110,000-110,000+65,000-40,000=NI (NL)

NI=25,000

My question is why the $110,00 Beginning Owners Equity = Beginning Owner's capital? Shouldn't equity = capital?????