capital account

Definition:

1. an account that states the value of funds and assets invested in a business by the owners or shareholders. 2. In a sole proprietor’s accounts an account recording the amount of money set aside by the proprietor for business purposes and regarded as the capital of the business, plus any accumulated profits that have not been taken by the proprietor for non-business purposes, less realised losses. 3. In the accounts of a partnership, an account recording the amount of money set aside by the partners for business purposes and regarded as the capital of the partnership plus any accumulated profits that have not been taken by the partners for non-business purposes, less realised losses.



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