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Why the Proprietor name is not shown in the books for his personal transactions

asked Mar 26, 2016 in Journal Entries by ravisankarsagar (4 points) 561 views

1 Answer

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From the accounting point of view, it is more important to depict in books how much has been invested in the business rather than the name of the proprietor.  That is why proprietor's account is callled capital account.  In case of partnership, each parners' capital account is preceeded by his name, for example Ramesh's Capital A/c.  In case of a proprietor, since there is a single owner, no point in writing his name before his capital account.
answered Mar 26, 2016 by jbsclasses (3,971 points)
special entity concept
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