Glossary
| Term |
Description |
| Capital Account |
The partners in a partnership or members of an LLP have both Capital and Current Accounts.
The Capital Account represents their share of the equity of the business and is made up of money (or other assets) they have introduced into the business. This is repaid to them when they retire.
The Current Account represents their share of profits and losses and profits can be withdrawn as drawings. |
| Current Account |
The partners in a partnership or members of an LLP have both Capital and Current Accounts.
The Current Account represents their share of profits and losses and profits can be withdrawn as drawings.
The Capital Account represents their share of the equity of the business and is made up of money (or other assets) they have introduced into the business. This is repaid to them when they retire. |