Capital structure decisions have vital propositions on the value of the company, as the elements of the capital determine the cost of capital. Capital structure refers to the mix of debt and equity used by a firm in financing its assets. The capital structure decision is one of the most important decisions made by financial management. The paper tries to analyze the to what extent accounting variables that is financial strength, long term profitability, Tangibility of assets, Business risk and solvency effect capital structure of oil companies listed on National Stock Exchange in India. The findings illustrate that accounting variable such as financial strength is positively related to leverage and other variables are negatively related to the dependent variable. It has also been found that all the explanatory or accounting variables are important determinant of capital structure. Moreover those firms apply various strategies for forming their capital structure irrespective of the fact that they belong to oil industry.