Interested to Buy Any Domain ? << Click Here >> for more details...
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.
- 2 Answers
- 26096 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / rajkumar
capital account is opened for businessman who invests money
in business. capital account in business money invested for
this purpose capital account is opened and drawings account
is related capital account .in business money is withdrawn
by businessman for his personnal use
| Is This Answer Correct ? | 29 Yes | 7 No |
Answer / 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Where as drawings accounts the amount withdrawn by the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 |
What is partnership accounting?
How bank reconciliation statement is prepared
How to pass workscontract sale invoice which includes WCT & VAT.
Hai i'm sujatha,i completed MBA (Finance)2010 and then i done SAP FICO ,Now i want search jobs on sap .For getting SAP FICO Consultant job what are the require skill for me?
DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in haryana. The company's sales in the year ending on 31st march 2007 were Rs.1000 million(Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of the company is 14 percent.The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30 million per annum. The plant can be sold for Rs.200 million: (a) The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annum installment of interest and repayment of principal. (b) A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: (1) Should the company expand its capacity? show the computation of NPV. (2) What is the annual installment of bank loan? (3) calculate the quarterly installment of the financial institution loan. (4) should the company borrow from the bank of from the financial institution?
If company invest Rs. 3,00,000 in Chit & Fund and later received with Profit Rs. 3,50,0000 = (Rs. 3,00,000 + 50,000 profit amount). Pls advise how to pass the profit amount...and in which head the profit amount goes
what is BRS
What Entery Should Made When Godown Rent Paid in Advance At The Time Of Agreement.Transation Is as Below * Rent Paid To XYZ (OWNER OF PROPERTY) For Running Month. * One Month Rent In Advance Tenent will Always pay rent amt 1st of every month. How can we do entry every month and How can party's a/c will due on ending every month. How can party a/c Show ADVANCE RENT. Please enter every entery including JV. With time when it is necessary.
Capital reserve is - a) real account b) nominal account c) personal account d) none of them
What are the functions of manger -accounts and manager-finance? Explain in detail
what is midcap share?
What is the difference between General Ledger and Ledger?
Audit 
