<PAGE>
PAGE 1
000 B000000 08/31/97
000 C000000 0000869313
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
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007 C012600 26
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<PAGE>
PAGE 2
007 C012900 29
007 C013000 30
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 FRANKLIN TEMPLETON SERVICES, 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
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011 C030001 33701
011 C040001 3628
012 A000001 FRANKLIN TEMPLETON INVESTOR SERVICES, INC.
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012 C030001 33701
012 C040001 3628
013 A000001 MCGLADREY & PULLEN, LLP
013 B010001 NEW YORK
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013 B030001 10017
013 B040001 2416
015 A000001 THE CHASE MANHATTTAN BANK
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015 C020001 NY
015 C030001 10081
015 E010001 X
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015 B000002 S
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015 D020002 1061
015 E040002 X
015 A000003 THE CHASE MANHATTAN BANK
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015 E040003 X
015 A000004 DELETE
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<PAGE>
PAGE 3
015 B000005 S
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015 D010005 AUSTRIA
015 D020005 A-1011
015 E040005 X
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015 A000009 THE ROYAL BANK OF CANADA
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<PAGE>
PAGE 4
015 A000015 BANQUE PARIBAS
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015 D020023 61000
<PAGE>
PAGE 5
015 E040023 X
015 A000024 BANQUE PARIBAS
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015 A000025 THE FUJI BANK, LTD.
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015 D010025 JAPAN
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015 B000026 S
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015 D020032 N-0107
<PAGE>
PAGE 6
015 E040032 X
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015 C010039 SINGAPORE
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015 A000040 CESKOSLOVENSKA OBCHODNI BANKA A.S.
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<PAGE>
PAGE 7
015 E040041 X
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015 D020049 EC2P 2HD
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015 A000050 THE FIRST NATIONAL BANK OF BOSTON
015 B000050 S
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<PAGE>
PAGE 8
015 D010050 URUGUAY
015 E040050 X
015 A000051 CITIBANK N.A.
015 B000051 S
015 C010051 CARACAS
015 D010051 VENEZUELA
015 D020051 1010
015 E040051 X
015 A000052 BARCLAYS BANK OF ZIMBABWE
015 B000052 S
015 C010052 HARARE
015 D010052 ZIMBABWE
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015 A000053 BANQUE GENERALE DE LUXEMBOURG, S.A.
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015 A000055 BARCLAYS BANK OF BOTSWANA LTD.
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015 C010055 GABORONE
015 D010055 BOTSWANA
015 E040055 X
015 A000056 BARCLAYS BANK OF KENYA
015 B000056 S
015 C010056 NAIROBI
015 D010056 KENYA
015 E040056 X
015 A000057 BARCLAYS BANK PLC
015 B000057 S
015 C010057 NICOSIA
015 D010057 CYPRUS
015 D020057 1644
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015 A000058 DEUTSCHE BANK A.G.
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015 A000059 BARCLAYS BANK OF ZAMBIA
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015 A000060 STANDARD BANK NAMIBIA LTD
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015 C010060 WINDHOEK
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<PAGE>
PAGE 9
015 A000061 CHASE MANHATTAN BANK INTERNATIONAL (CMBI)
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015 A000065 THE BRITISH BANK OF THE MIDDLE EAST
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015 A000066 DELETE
015 A000069 HONGKONG & SHANGHAI BANKING CORP LTD
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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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PAGE 16
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SIGNATURE JAMES R. BAI
[S]JAMES R. BAIO
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
TEMPLETON CAPITAL ACCUMULATOR FUND AUGUST 31, 1997 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRITY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK>0000869313
<NAME> TEMPLETON CAPITAL ACCUMULATOR FUND
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<PER-SHARE-NAV-END> 10.97
<EXPENSE-RATIO> 1.00 <F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>RATIO OF EXPENSES TO AVERAGE NET ASSETS WITHOUT REIMBURSEMENT
IS 1.13%.
</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, 1997, we considered
its internal control, including controls over 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.
The management of Templeton Capital Accumulator Fund, Inc. is responsible for
establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally, controls that are
relevant to an audit pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented in conformity with
generally accept accounting principles. Those controls include safeguarding of
assets against unauthorized acquisition, use, or disposition.
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 would not necessarily disclose all
matters in internal control 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 component 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,
including controls over safeguarding securities, that we consider to be material
weaknesses as defined above as of August 31, 1997.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/s/McGladrey & Pullen, LLP
MCGLADREY & PULLEN, LLP
New York, New York
September 26, 1997
