Capital Account question

I am a little confused about the Capital Account. We have a few contributing founders. When I tried to add their contribution into the Capital Account, it shows up on the Balance Sheet as a negative amount, then adds a separate line of positive amount, which nets it to zero. How should I input the founder contribution?

First, you need to specify the legal form of your organization. Are these “founders” shareholders in a stock company (corporation) or are they partners in a partnership? If the former, capital accounts are not the right approach. If the latter, you must create a capital account for each member. Then record their contributions by receiving money into a cash account, allocating the transactions to individual member’s capital accounts.