What are the reconciling items under both of these methods?

Question

I am working in a distributor company where they calculate closing capital by two methods. First is Total Assets- Liabilities = Closing capital. Second is opening capital+ profit/ (loss) for the year. But both of these are not tally. So please what are the items causing that difference. Drawings are included in expenses.

Answer 1

Both of these results should get you the same result. However, you are missing distributions.

Opening Capital + Net Income (loss) - Distributions = Closing Capital