Audit Assistant and Accountant Interview Questions and Answers

Capital A/C is credited in Balance Sheet to represent the owner's equity in the business.

• Capital A/C represents the owner's investment in the business.

• It is credited because it is a liability to the business.

• It is shown on the liabilities side of the Balance Sheet.

• If the business makes a profit, the Capital A/C is credited with the amount of profit.

• If the business incurs a loss, the Capital A/C is debited with the amount of loss.