What capital accounts are where

On the balance sheet of the company, capital accounts

are located at the bottom.

Because the business owner would keep the difference if

all of its assets were sold and all of its debts were paid,
the amount in the capital accounts will always equal the
sum of all of its asset accounts less the sum of all of its
liability accounts.

Accounting for income using double-entry books

There are five categories of nominal accounts used in
double-entry bookkeeping:

Income statements: what the company has made

Expense accounts: daily operating expenses of the
company
Asset accounts: the items that the company owns
Accounts of Liability: What the Company Owes
What is due to or by the firm owner in capital accounts.
A sample income statement
The quantity of sales you've made is increased when you
send a sales invoice to a client. That is a credit entry for
sales to the income account.

A debit entry would be made to the income account for

sales if you later needed to issue a credit note to lower or
cancel that invoice because your earnings were lower.