Always remember that capital (or the owner's interest) increases with profits and decreases with losses.

Does capital mean profit?

Capital profit is a type of profit that is realized when a capital asset is sold. ... Companies typically sell off assets that are not necessary to the core operation of the business, but that can be sold at or near current market value.

Is profit an asset or capital?

Another way to look at them is by segregating them based on profit and loss. For instance, the investments via which profit or income is generated are typically put under the category of assets, whereas, the losses incurred or expenses paid or to be paid are considered to be a liability.