Question

Capital account always shows credit balance. (State True or False)

Answer 1

NO...
FALSE.

SOMETIMES IT SHOW DEBIT BALANCE

Answer 2

Answer:

No, the given sentence is false as capital account not always contain credit balance.

Explanation:

Capital account also contains a debit balance along with credit balance.

A credit balance in the capital account depicts that the company owes the stated amount to the creditor. Whereas a debit balance in the capital account depicts that the creditor owes the stated amount to the company or the business.