This is the proprietor's or partners' account with the business. It will start with the balance brought forward from
the previous accounting period, to which is added any personal cash introduced into the business and the net profit
made by the business in this accounting period. Deducted from the capital account will be amounts drawn from the business and any loss made by the business. The final balance on the capital account should equal the net assets or net liabilities figure - and hence the statement of financial position baiances.Exhibit 11.3 gives the standard format.