<PAGE> PAGE 1
000 B000000 08/31/96
000 C000000 000000
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 TEMPLETON CAPITAL ACCUMULATOR FUND, INC.
001 B000000 811-6197
001 C000000 9545277591
002 A000000 500 EAST BROWARD BOULEVARD SUITE 2100
002 B000000 FT LAUDERDALE
002 C000000 FL
002 D010000 33394
002 D020000 3091
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
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007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 TEMPLETON INVESTMENT COUNSEL, INC.
008 B000001 A
008 C000001 801-15125
008 D010001 FT LAUDERDALE
008 D020001 FL
008 D030001 33394
008 D040001 3091
010 A000001 TEMPLETON GLOBAL INVESTORS INC.
010 C010001 FT LAUDERDALE
010 C020001 FL
010 C030001 33394
010 C040001 3091
011 A000001 FRANKLIN TEMPLETON DISTRIBUTORS, INC.
011 B000001 8-00000
011 C010001 ST. PETERSBURG
011 C020001 FL
011 C030001 33701
011 C040001 3628
<PAGE> PAGE 2
012 A000001 FRANKLIN TEMPLETON INVESTOR SERVICES, INC.
012 B000001 84-00000
012 C010001 ST. PETERSBURG
012 C020001 FL
012 C030001 33701
012 C040001 3628
013 A000001 MC GLADREY & PULLEN, LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10017
013 B040001 2416
015 A000001 THE CHASE MANHATTTAN BANK, N.A.
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10081
015 E010001 X
015 A000002 THE CHASE MANHATTAN BANK
015 B000002 S
015 C010002 BUENOS AIRES
015 D010002 ARGENTINA
015 D020002 1061
015 E040002 X
015 A000003 CHASE MANHATTAN BANK AUSTRALIA LTD.
015 B000003 S
015 C010003 SYDNEY
015 D010003 AUSTRALIA
015 D020003 2000
015 E040003 X
015 A000004 RESERVE BANK
015 B000004 S
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015 E040004 X
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015 D020006 1000
015 E040006 X
015 A000007 GENERALE BANK
015 B000007 S
015 C010007 BRUSSELS
015 D010007 BELGIUM
015 D020007 1000
<PAGE> PAGE 3
015 E040007 X
015 A000008 BANCO CHASE MANHATTTAN BANK, S.A.
015 B000008 S
015 C010008 SAO PAULO
015 D010008 BRAZIL
015 D020008 04719-002
015 E040008 X
015 A000009 THE ROYAL BANK OF CANADA
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015 B000011 S
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015 B000013 S
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015 E040013 X
015 A000014 MERITA BANK KOP
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015 C010014 HELSINKI
015 D010014 FINLAND
015 D020014 00500
015 E040014 X
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015 B000015 S
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015 D020015 75078
015 E040015 X
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015 B000016 S
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<PAGE> PAGE 4
015 D020016 60441
015 E040016 X
015 A000017 BARCLAYS BANK OF GHANA LTD.
015 B000017 S
015 C010017 ACCRA
015 D010017 GHANA
015 E040017 X
015 A000018 BARCLAYS BANK PLC
015 B000018 S
015 C010018 ATHENS
015 D010018 GREECE
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015 E040018 X
015 A000019 CHASE MANHATTAN BANK
015 B000019 S
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015 A000020 CITIBANK BUDAPEST RT.
015 B000020 S
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015 D010020 HUNGARY
015 D020020 1052
015 E040020 X
015 A000021 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000021 S
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015 A000022 BANK OF IRELAND
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015 B000023 S
015 C010023 TEL AVIV
015 D010023 ISRAEL
015 D020023 61000
015 E040023 X
015 A000024 THE CHASE MANHATTAN BANK
015 B000024 S
015 C010024 MILAN
015 D010024 ITALY
015 D020024 20121
015 E040024 X
015 A000025 THE FUJI BANK, LTD.
015 B000025 S
015 C010025 TOKYO
<PAGE> PAGE 5
015 D010025 JAPAN
015 E040025 X
015 A000026 THE CHASE MANHATTAN BANK
015 B000026 S
015 C010026 KUALA LUMPUR
015 D010026 MALAYSIA
015 D020026 50250
015 E040026 X
015 A000027 THE HONGKONG AND SHANGHAI BANKING CORP. LTD
015 B000027 S
015 C010027 CUREPIPE
015 D010027 MAURITIUS
015 E040027 X
015 A000028 THE CHASE MANHATTAN BANK, S.A.
015 B000028 S
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015 D020028 01210
015 E040028 X
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015 B000029 S
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015 D010029 MOROCCO
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015 A000034 THE HONGKONG AND SHANGHAI BANKING CORP LTD
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<PAGE> PAGE 6
015 D010034 PHILIPPINES
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015 A000035 BANK HANDLOWY W. WARSAWIE S.A.
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015 A000038 THE HONGKONG AND SHANGHAI BANKING CORP LTD
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015 A000040 CESKOSLOVENSKA OBCHODNI BANKA A.S.
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015 A000043 THE CHASE MANHATTAN BANK
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<PAGE> PAGE 7
015 D020043 28046
015 E040043 X
015 A000044 THE HONGKONG AND SHANGHAI BANKING CORP. LTD.
015 B000044 S
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015 E040044 X
015 A000045 SKANDINAVISKA ENSKILDA BANKEN
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015 A000046 UNION BANK OF SWITZERLAND
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015 A000047 THNE CHASE MANHATTAN BANK
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015 C010047 BANGKOK
015 D010047 THAILAND
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015 A000048 THE CHASE MANHATTAN BANK
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015 C010048 ISTANBUL
015 D010048 TURKEY
015 D020048 80700
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015 A000049 THE CHASE MANHATTAN BANK
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015 D010049 UNITED KINGDOM
015 D020049 EC2P 2HD
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015 A000050 THE FIRST NATIONAL BANK OF BOSTON
015 B000050 S
015 C010050 MONTEVIDEO
015 D010050 URUGUAY
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015 A000051 CITIBANK N.A.
015 B000051 S
015 C010051 CARACAS
015 D010051 VENEZUELA
015 D020051 1010
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015 A000052 BARCLAYS BANK OF ZIMBABWE
015 B000052 S
<PAGE> PAGE 8
015 C010052 HARARE
015 D010052 ZIMBABWE
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015 A000053 BANQUE GENERALE DE LUXEMBOURG, S.A.
015 B000053 S
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015 A000056 BARCLAYS BANK OF KENYA
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020 A000003 JAMES CHAPEL
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<PAGE> PAGE 9
020 C000004 5
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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<PAGE> PAGE 15
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SIGNATURE JAMES R. BAIO
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
TEMPLETON CAPITAL ACCUMULATOR FUND, INC. AUGUST 31, 1996 ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000869313
<NAME> CAPITAL ACCUMULATOR FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-END> AUG-31-1996
<INVESTMENTS-AT-COST> 93599291
<INVESTMENTS-AT-VALUE> 110075117
<RECEIVABLES> 271297
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 135
<TOTAL-ASSETS> 110346549
<PAYABLE-FOR-SECURITIES> 2200383
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 127602
<TOTAL-LIABILITIES> 2327985
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 87938653
<SHARES-COMMON-STOCK> 11899024
<SHARES-COMMON-PRIOR> 4111171
<ACCUMULATED-NII-CURRENT> 1917679
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1686406
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 16475826
<NET-ASSETS> 108018564
<DIVIDEND-INCOME> 2500965
<INTEREST-INCOME> 612776
<OTHER-INCOME> 0
<EXPENSES-NET> 872973
<NET-INVESTMENT-INCOME> 2240768
<REALIZED-GAINS-CURRENT> 1998603
<APPREC-INCREASE-CURRENT> 8686029
<NET-CHANGE-FROM-OPS> 12925400
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1315933)
<DISTRIBUTIONS-OF-GAINS> (285372)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2871022
<NUMBER-OF-SHARES-REDEEMED> (393813)
<SHARES-REINVESTED> 5310644
<NET-CHANGE-IN-ASSETS> 42480938
<ACCUMULATED-NII-PRIOR> 1017645
<ACCUMULATED-GAINS-PRIOR> (51626)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 656146
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1016763
<AVERAGE-NET-ASSETS> 87499590
<PER-SHARE-NAV-BEGIN> 7.97
<PER-SHARE-NII> .19
<PER-SHARE-GAIN-APPREC> 1.10
<PER-SHARE-DIVIDEND> (.15)
<PER-SHARE-DISTRIBUTIONS> (.03)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.08
<EXPENSE-RATIO> 1.00<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>The expense ratio for The Templeton Capital Accumulator
Fund for August 31, 1996 without reimbursement was 1.10%.
</FN>
</TABLE>
The Board of Directors and Shareholders
Templeton Capital Accumulator Fund, Inc.
In planning and performing our audit of the financial statements of Templeton
Capital Accumulator Fund, Inc. for the year ended August 31, 1996, we considered
its internal control structure, including procedures for safeguarding
securities, in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and to comply with the
requirements of Form N-SAR, not to provide assurance on the internal control
structure.
The management of Templeton Capital Accumulator Fund, Inc. is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
August 31, 1996.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/s/McGladrey & Pullen, LLP
New York, New York
September 27, 1996
