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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 / rahul gandhi
IF I am a Founder of Co. & I had intially invested 1 Lac
Rs. & then after certain years Turnover cross 1 Crores but
then my intial investment with the co. now if co. presently
became Ltd. co. & now any kind of share holder investment
is an assets, but my intial cont.for co. is a liability
which i can claim or as per co.law we can put provision for
this capital so its shown atliability side in B/S.
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