I am confused with Capital Account and Drawings Account.
Please show me "the general Journal Entries" and "Owner's
Equity in Balance Sheet".
(1) The owner increased his investment in the company by
$10,000.
(2) The owner increased his investment in the company by
$10,000.
Answer Posted / h.r. sreepada bhagi
I answer this question from the view point of a
proprietorship concern:
Capital Account shows the amount of money invested in the
business by the proprietor/proprietrix and shown on the
Liabilities side of the Balance Sheet.
Where as drawings accounts the amount withdrawn by the
proprietor/owner and the balance is shown on the Assets side
of the Balance Sheet. Capital or drawings can be adjusted
and net and excess of money invested over drawings can be
shown on the Liabilities side of the B/S or excess of
drawings over capital on the Assets side of the B/S.
The same thing applies to Partners' Capital and Partner's
Drawings Account.
However there can not be drawings account in a company
registered under the Companies' Act in India or any such Act
in other countries.
Is This Answer Correct ? | 10 Yes | 6 No |
Post New Answer View All Answers
What do you mean by ledger posting?
What is the master account?
When Tds is applicable to deduct and wht is rate for different work panel?
Please explain the difference between provision and reserve?
What knowledge should financial accountant have?
WE PURCHASED ONE ASSET,HOW CAN WE CALCULATE EXCISE DUTY,VAT,SERVICE TAX?[IN CASE OF SELLING PURPOSE OR OWN PURPOSE].SHALL WE CLIME CREDIT ON THAT?THEN HOW?
we have registered to MCCIA(Maratta Chember of Commerce Ind & Agri.).They given a Tax Invoice against this registration with charging service tax@10.3%.can we take credit of this service charge ?
how to pass entry in tally for Interest received on sweep credited to saving a/c? In what group it should be come
pls. tell me with detail (what is the rate of service tax and w.c.t. for a contractor who do civil work -make building and repairing. what is the format of generate a bill for (with material and labour both ) what entry should i pass in my accounts bokks. general and sales entry.
Who is considered the father of accounting?
How i should sellone the mobile phone when interviewer will ask sell this phone to me?
what is the nature of profit and loss approprition account.which entity prepare this.
Why you want to change???
what is lease accounting?? please explain me....
What all are the documents need to check for a supplier payment?