What is impact of Capital Accounts working on COA Summary ?

This ensures accurate tracking of capital contributions, withdrawals, and profit distribution while maintaining correct financial records in GLOWSIMS (Double Entry Accounting).

1. Opening Balance (At the Time of System Setup)

📌 Impact (Amount To Pay) : Starting Balance Equity ↓ & Capital Accounts ↑  

🔹 Accounting Entry: 

• Dr. Starting Balance Equity (Equity ↓)
• Cr. Capital Accounts (Equity ↑)

OR  

📌 Impact (Paid in Advance) : Starting Balance Equity ↑ & Capital Accounts ↓  

🔹 Accounting Entry: 

• Dr. Capital Accounts (Equity ↓)
• Cr. Starting Balance Equity (Equity ↑)

2. Funds Contributed (Partner Invests Money into the Business)

📌 Impact: Cash/Bank ↑ & Capital Accounts ↑

🔹 Accounting Entry:

• Dr. Cash/Bank (Assets ↑)
• Cr. Capital Accounts (Equity ↑)

3. Drawings (Partner Withdraws Money from the Business)

📌 Impact: Cash/Bank ↓ & Capital Accounts ↓

🔹 Accounting Entry:

• Dr. Capital Accounts (Equity ↓)
• Cr. Cash/Bank (Assets ↓)

4. Share of Profit (Distributing Profit Among Partners)

📌 Impact: Capital Accounts ↑ & Retained Earnings ↓

🔹 Accounting Entry:

• Dr. Retained Earnings (Equity ↓)
• Cr. Capital Accounts (Equity ↑)