Another Question Go to Table of Contents 3a. The amount in this account decreases what the business owes the owner. Another Question Go to Table of Contents 3b. The Capital account indicates what the business owes the owner. Another Question Go to Table of Contents 3c.
Expense accounts record the cost of doing business.
The owner taking assets out of the business is not a cost of doing business. It is just a decrease of what the business owes the owner. Another Question Go to Table of Contents 4a. The Capital account records everything the business owes the owner. Another Question Go to Table of Contents 4b.