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LSDefine

Simple English definitions for legal terms

capital account

Read a random definition: cur. adv. vult

A quick definition of capital account:

A capital account is a record of how much money the owners of a company have put in and taken out. It is shown on the balance sheet and includes the money the owners put in when they started the company, any profits they made, and any money they took out. For example, if three people started a company and each put in $20,000, their capital accounts would start at $20,000 each. If the company made a profit of $30,000, each owner's account would go up by $10,000. But if one owner took out $5,000, their account would only be worth $35,000 while the other owners' accounts would still be worth $40,000 each.

A more thorough explanation:

A capital account is a record of the ownership rights of the owners of a company. It is used in accounting and is shown on the balance sheet. The capital account is made up of three things:

  • Capital contributions made by the owners when the company was created or afterwards as required by the business. These contributions add to the capital account.
  • Net income or net losses proportional to the owner's ownership rights at the end of each fiscal year. These are added or subtracted from the capital account.
  • Any distributions of profit made in favor of, or authorized personal withdrawals made by, the owners. These are subtracted from the capital account.

For example, if three people create an LLC and each contributes $20,000, the capital account of each owner starts with a record of $20,000. If the business reports a net income of $30,000 at the end of the fiscal year, each owner's account would increase by $10,000 (assuming equal ownership shares), for a total of $40,000 each. However, if partner A withdrew $5,000, his capital account would be reduced to $35,000, while partners B and C would still have $40,000 each.

The example shows how the capital account works in practice. It demonstrates how the account is affected by capital contributions, net income or losses, and distributions of profit or personal withdrawals. By keeping track of these items, the capital account provides a clear picture of the ownership rights of the owners of a company.

capital | capital asset

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Dkk
19:42
Maybe, didnt happen last time.
19:42
it was hard to not improve it. google search was terrible due to the ads and seo cheaters with buzz words and alt text
Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
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