The Owner's Capital Account of a sole proprietorship is credited when?

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2026-04-19 01:05

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The Owner's Capital Account of a sole proprietorship is credited when the owner invests additional personal funds into the business or when the business earns profits. This increase in the capital account reflects the owner’s equity in the business. Additionally, any gains from the sale of business assets or retained earnings can also contribute to a credit in the capital account.

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