Nature of Capital Reduction Account Nature of Capital Reduction Account, It is a special type of account that is create when a company reduces its share capital. The nature of capital reductions accounts is to record the reduction in the company’s share capital, which typically occurs when the company buys back its own shares or… Read More »
Capital and Equity Difference between Capital and Equity, Capital and equity are two terms used in finance and accounting, and while they are related, they have different meanings. Capital refers to the financial resources of a company or individual, which can be use to generate income or invest in assets. It includes all… Read More »
Balance Sheet Equation Balance sheet equation also known as the accounting equation, is a fundamental principle of accounting that states that the assets of a business are equal to the sum of its liabilities and owners’ equity. Mathematically, it can be represent as: Assets = Liabilities + Owners’ Equity This equation is always in balance,… Read More »