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To calculate the owner's equity at the beginning of the financial year, we can apply the accounting equation:

\[
\text{Owner's Equity} = \text{Assets} - \text{Liabilities}
\]

Based on the table you provided, let's organize the items into assets and liabilities:

### Assets:
- Plant and equipment: €28,750
- Cash: €1,400
- Inventories: €8,600
- Trade receivables: €10,300

Total assets = \( 28,750 + 1,400 + 8,600 + 10,300 = 49,050 \)

### Liabilities:
- Trade payables: €6,800

### Additional Adjustments:
- Drawings: €6,000 (This reduces owner's equity.)
- Profit for the period: €10,000 (This increases owner's equity.)

### Calculation:
1. Calculate the owner's equity at the end of the financial period (31 August 2017):
   \[
   \text{Owner's equity (end)} = \text{Assets} - \text{Liabilities} = 49,050 - 6,800 = 42,250
   \]
   
2. Adjust for the owner's drawings and profit for the year to find the owner's equity at the beginning:
   \[
   \text{Owner's equity (beginning)} = 42,250 - 10,000 + 6,000 = 38,250
   \]

Therefore, the owner's equity at the beginning of the financial year was **€38,250**.

Would you like further details on this calculation? Here are some related questions:

1. How do changes in assets or liabilities affect owner's equity?
2. Why are drawings subtracted and profit added in equity calculations?
3. What role do liabilities play in determining net assets?
4. How would additional liabilities or assets change the owner's equity?
5. What happens to equity if profit or losses vary throughout the year?

**Tip:** Always separate assets and liabilities when determining net equity for clarity in financial analysis.

The information in the table relates to JJ Manufacturers as at 31 August 2017. The owner's equity at the beginning of the financial year to 31 August was €____.

Learn how to calculate the owner's equity at the beginning of the financial year for JJ Manufacturers using the accounting equation. This includes organizing assets and liabilities, adjusting for drawings and profit, and solving for equity.

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