Equity VS Capital

There is no difference between Equity And Capital as capital is used in case of Sole Proprietorship or Partnership while Equity or Capital Stock is used in case of companies or a corporations’ businesses.

Equity shows the ownership of owners or stockholders who invested in the company or corporation while capital is the amount of Cash or Goods invested by the Proprietor Sole Owner or Partners in the business. Statement of Changes In Equity is prepared to find out Equity while Statement of Owner’s Equity is prepared to find out the value of Ending Capital or Owner’s Equity.

It is to be noted that Both of these are shown on Balance Sheet on Liabilities & Owners’Equity Side.