why should be mention capital in liabilities side
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Answer / suresh
Business entity concept: It is one of the main accounting
principle of accounting this concept says that Business
should be treated seperately from the properitor or investor
In simple words owner of the business should be treately
sepreatly from the business what ever profits come in to
the business should be taken in company account.
that why capital in liabilities side.
| Is This Answer Correct ? | 10 Yes | 0 No |
Answer / ram
As per the business entity concept owner is seperated from
the business. so capital is shown as a liability
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / mayur sitaram mestry
because capital is not a asset for a company its a libilities for a propewriter.
| Is This Answer Correct ? | 1 Yes | 3 No |
Answer / amit jain
because assets = capital + Liabilities
that is why capital is shown as liability side
| Is This Answer Correct ? | 0 Yes | 3 No |
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