Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 2 - No. 12)
In a partnership, what is the purpose of the capital account?
To record the assets of the partnership.
To record the liabilities of the partnership.
To record the owner's investment in the business.
To record the day-to-day operating expenses.
Explanation
The capital account represents the owners' equity, their initial investment, and their share of profits or losses.
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