Capital account comes under which concept?

The correct answer is: A. Separate entity concept.

The separate entity concept is a fundamental accounting concept that states that a business is a separate entity from its owners. This means that the business’s financial statements should reflect the financial performance of the business, not the financial performance of its owners.

The separate entity concept is important because it allows investors and other users of financial statements to assess the financial health of a business without being confused by the financial affairs of its owners.

The other options are incorrect because:

• The accounting period concept is the concept that a business’s financial performance should be reported over a specific period of time, such as a year or a quarter.
• The accrual concept is the concept that revenues and expenses should be recorded when they occur, not when cash is received or paid.
• The realisation concept is the concept that revenue should only be recognised when it is realised, which means when it is earned and there is a reasonable certainty that it will be collected.