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Capital accounts are for the purpose of tracking balances of partners, beneficiaries or other members.

Sole proprietorships will have a single capital account. Partnerships maintain a capital account for each of the partners. Trusts maintain a capital account for each of the beneficiaries. Funds maintain a capital account for each of the members.

By default, all balances under capital accounts will be reported under Capital accounts equity account.

Most of the time it's appropriate to rename this account. For example, if the business represents sole proprietor, the account could be renamed to Owner's equity under Chart of Accounts.

If applicable, you can also change the category so the account is shown under Liabilities section instead of Equity.

Each capital account will have by default several sub-accounts:

Sub-accounts are useful to further track movements per each capital account. You can add, remove or rename sub-accounts under Settings tab but generally for most businesses, the default sub-accounts should work well.