What is Contra Capital Account
We already studied about “ Contra Equity Account ” which is used in case of company or corporation but contra capital account is applied in case of Sole Proprietorship or Partnership businesses. It is the reversal or opposite of Capital Account . Example are Drawings and N et Loss which is deducted from capital account in order to calculate the finalized capital left in the business. As contra capital account shows debit or negative balance, so it is deducted from capital account on B alance Sheet .