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Capital is asset of the company. But why does it appear in
Liability side of the balance sheet.
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Answer Posted / brijesh
according to companies law 1956 -company is a artificial
judicial person who is saparete from its members.Capital is
actually the assets of the members (called shareholders) so
members captal is liability for the company because it is
a obligation to the company to
repay the amount,so Capital comes under the Liability side.
| Is This Answer Correct ? | 41 Yes | 1 No |
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