Capital account is liability nature of account because any capital introduce by owner towards business is the liability of business to return to it's owner.
Personal account
Capital Stock is an equity account. You may think of equity as ownership.
Capital is an equity account and liability of business to payback as it is the amount invested by owners in business.
additional paid in capital
Paid in capital in excess of par is called "Share premium account"
A Drawing account is a contra capital account and is used by a proprietor type business. It is for recording the owner's withdrawals of the company's assets.
It is under capital which is the account type of Owner's Equity. Fees Earned is under the title Revenue when expanding the ledger.
The normal balance in a capital account is a credit. Capital is a balance sheet account. Assets = Liabilities + Capital
Capital account as well as Drawings account are Personal accounts !!!
capital reserve is a type of account on a company's balance sheet that is reserved for longterm capital investment projects or any other large expenses that will be incurred in the future. capital reserve is a type of account on a company's balance sheet that is reserved for longterm capital investment projects or any other large expenses that will be incurred in the future.
Difference between Fixed and Fluctuating Capital AccountsFixed and fluctuating capital accounts are the terms which are often used in the context of partnership. Partners can maintain the capital accounts in two ways one is fixed capital account and other is fluctuating capital accounts, let's look at the difference between both of them - Fixed Capital Account - Under this system, the capital which is introduced by partners will remain fixed throughout the life of the partnership. Hence under this method two type of accounts are made one is capital account and other is current account. Therefore all entries relating to drawings, interest on capital, profit and loss share of partner are made in a separate account for each partner, it is called current account of partners. However when partner brings additional capital or withdraws capital permanently, then capital account is credited or debited respectively.Fluctuating Capital Account - Under this method capital account of partners will not remain fixed rather they will keep fluctuating from time to time. In this method all the entries related to drawings, interest on capital and share of profit and loss of partner are recorded in capital account, hence in this method there is no need for current account.Fluctuating capital account method is usually preferred by partners; however they can also use fixed capital account according to their business and preference.
[Debit] Interest on capital account xxxx [credit] Capital account xxxx