Mastery card

I can explain Capital Account

The owner's or partner's equity stake ledger in the business.

A capital account tracks owner's or partner's invested capital, share of profits/losses, and drawings in non-corporate (and partner) books.

Sticky trick

For companies, think share capital + reserves instead of a single capital account.

Take into the room

In plain English, what is Capital Account?

Or start your own 5-word trail from home.