In financial record of a limited company, it is the account indicating the total amounts of share capital such as ordinary share capital and preference share capital.
In partnership, it is a series of account showing the interest of each party in the net asset of the partnership.The account will record goodwill valuation, partner's capital contribution and revolution.
In sole trader, the account will record the interest that the sole trader holds in the net asset of the business.
Capital account may also refer to the account recording of capital expenditure on things such as plant, machinery, building and land.
Capital account may also refer to the budgeted amount that can be spent on major issue especially in public sector budgeting.
Capital account may also indicate the part of the balance of the payment account which dictates the flow of money between currencies for investment purpose.
Leave a Reply.
Gain the knowledge of finance by visiting our site.