Separate from operating and capital accounts
are the accounts of the state and local social insurance funds.
Testing of the theory is somewhat tricky, since to look at the issue empirically requires finding a reasonably lengthy time period when a sample of small economies simultaneously maintained open capital accounts
. The last such period ended around 1960.
We get to choose between the capital account
and the trade account, but we can't have it both ways.
In other words, an adjustment to the capital accounts
is warranted to "true up" the partners' capital accounts
just prior to the change in economics by allocating to the partners any unrealized income, gain, loss, or deduction inherent in the partnership property that previously has not been reflected in the partners' capital accounts
, based on their existing economic agreement.
Unprecedented Openness Is Increasingly at Odds with a Closed Capital Account
The government channeled 12 billion yen into the bank's capital account
in January last year to replenish the bank's depleted capital base, but it has remained unable to revive its net profitability.
current account deficit but their capital account
Taxable gain from a workout may be deferred in certain cases if capital accounts
are not restated.
Consequently, with their negative capital accounts
increased to zero, the taxpayers recognized a phantom gain for that year.
Liabilities are paid and any remaining cash is distributed to the partners according to the balances in their capital accounts
(2) Historically, drafters of partnership agreements guaranteed this union by requiring that (1) the partnership maintain a separate capital account
for each partner that tracked each partner's economic rights in the partnership and (2) the partnership liquidate in accordance with those capital accounts