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Capital Account

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Accounting for Partnerships

MS: Akaun Modal · EN: Capital Account · ZH: 资本账户

Meaning

A partner's Capital Account is the account that records the capital invested by each partner. Under the fixed capital method, the balance stays unchanged except for additional capital or capital withdrawn, while other transactions such as profit and drawings are recorded in the Current Account.

Example

Hadi contributes an opening capital of RM50,000; this amount is credited to his Capital Account and remains RM50,000 as long as no further capital is added.

Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5

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