Here are the dual calculations: one is the calculation by formula (1); the other is that by formula (2):
Po + R = E + P1 (1)
A1 — L1 = P1 (2)
Below is the key to the symbols in the above formulas:
Po = Proprietors’ equities at the beginning of the period.
R = Revenues for the period.
E = Expenses for the period.
P1 = Proprietors’ equities at the end of the period.
A1 = Assets at the end of the period.
L1 = Liabilities at the end of the period.