A ‘Capital Account’ is a term used in partnership and in limited liability company business formats. It refers to the individual balances in the equity section of the balance sheet. The basic formula for value is beginning balance plus contributed capital plus earnings from the current accounting period less any withdrawals
Contributed capital is the financial value assigned to equity invested by a partner, member or shareholder into several of the various forms of business entities. Most commonly illustrated using cash and/or fixed assets contributed at business start-up.