Is Capital A Temporary Account Or A Permanent Account?

Capital Account Is A Permanent Account / Is Capital An Income Statement Account Or A Balance Sheet Account?

Capital is a Permanent Account and not a Temporary Account. Capital account is a Balance Sheet Account and recorded in the Books of Accounts until the business is closed or goes into liquidation.

Capital account is posted to Post-Closing Trial Balance before it is transferred to Balance Sheet.

It is a part of Owner’s equity.

The opening capital, which is recorded in the current accounting period, is actually the closing capital of previous accounting period transferred to current accounting period. The closing capital, which is shown on balance sheet, of current accounting period is transferred to the next accounting period.