Why Capital is Posted in the credit side? Concept of it
briefly .
Answers were Sorted based on User's Feedback
Answer / sallu
business receives capital from business person, so the person is the creditor of business and the capital so received is the liability of business, thats why it is credited in the liability side of the balance sheet.
Is This Answer Correct ? | 13 Yes | 3 No |
Answer / nadhiya
Debit the receiver. Credit the giver. So this rules
applicable for Capital A/c. Capital received from owner so
capital a/c is Cr.
Is This Answer Correct ? | 2 Yes | 2 No |
Answer / barodianbuddy(acca)
CAPITAL IS POSTED ON JOURNAL ON CREDIT SIDE AS OWNER IS CREDITOR TO BUSINESS DUE TO HIS INVESTMENT. ITS SHOWN IN STATEMENT OF FINANCIAL POSITION ON LIABILITY SIDE UNDER EQUITY SECTION AS SHARE CAPITAL OR EQUITY ACCORDING TO IAS 1.
Is This Answer Correct ? | 1 Yes | 1 No |
Answer / raju
Company owe money from the owner so,that the owner is creditor of company so capital is liability to the company that is why its posted on credit side
Is This Answer Correct ? | 1 Yes | 1 No |
What's the VAT percentage?
What is the entry pass if we are given to advance for employee?
Hi, I want to know whether PF Deduction is applicable if the CTC Is Rs.7000/-PM. We already deducted ESI On Gross Salary (1.75%). Whether PF Is applicable in this?Employee & Employer?
Vendor A/c Dr To Purchases A/c Cr In an entry what "TO"(Near Purchase) means or stands for or used for or from which accounting angle we have to use.
What is the meaning of RTGS & its working ?
Does the accounting system appear to facilitate one specialty from financial, auditing, or cost managerial or tax accounting over the others?
Discount payble and reciveble entries what type of vochars entry pleas tell...............
What is a Special Calendar and its types
what is the mean of amountisation
What is the Difference Between Tally Software & SAP Software..?
14 Answers GTS, SSK, TATA,
Dear sir/madam, Want to know entry for closing of sundry creditors account on the end of the year when its accounts shows debit balance, Payment made excess. E.g Invoice rcvd : 100000.00 from XYZ company payment Made: 105000.00 Please suggest best entry for the same
why are accounting firms needed?